CFP Practice Test 5

10 free CFP practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

CFP Practice Test 5Tutor mode

Question 1 of 10

General Principles of Financial Planning

Carmen and Derek provide the balances below. They bought their home in 2022 for $520,000; its current fair market value is $480,000. Carmen also owns a $250,000 whole life policy with a cash surrender value of $40,000. They pay the credit card balance in full each month. What is the couple's net worth?

Carmen and Derek — balances as of today
Item	Amount
Checking and savings	$18,000
Brokerage account (fair market value)	$95,000
401(k) account	$210,000
Automobile (fair market value)	$30,000
Mortgage balance	$310,000
Auto loan balance	$14,000
Credit card balance	$6,000