Most students hit the same wall in this course, and it is not insurance or estate law — it is the arithmetic. Personal Financial Planning, 13th Edition by Lawrence J. Gitman runs on the time value of money: future value, present value, annuities, and the loan and retirement calculations built on them. The narrative chapters read easily, and then a question asks what a sum will be worth in twelve years, and the whole plan rests on a computation that was skimmed in chapter two.
Why this test bank helps
Calculation skills decay unless they are used, and this course keeps returning to the same handful of formulas in new clothing. Practice brings them back deliberately, and mixing calculation items with concept items reproduces the structure of the real paper. The rationale works through the arithmetic rather than just naming the answer, which turns a wrong result into a located error: the wrong rate, the wrong number of periods, or an annuity treated as a single amount.
What’s inside
- Chapter-by-chapter coverage mirroring the table of contents, so an evening’s reading can be tested that evening.
- Definition-level items to check recall, then scenarios that ask you to use the concept.
- Rationales throughout, so a wrong answer becomes a diagnosed gap rather than an unexplained mark.
- The time value of money worked through in every context this book uses it — savings growth, loan payments, the housing decision and retirement funding.
- A single searchable PDF, available immediately after checkout.
Topics covered
- The financial planning process — goals, the life cycle, and personal balance sheets and cash-flow statements.
- Time value of money — future and present value of single amounts and annuities, and the rule of 72.
- Taxes — filing, deductions, marginal against average rates, and basic tax planning.
- Cash management — checking accounts, savings vehicles, liquidity and the emergency fund.
- Consumer credit — credit cards, instalment loans, the cost of borrowing and sensible debt limits.
- Major purchases — the rent-or-buy housing decision, mortgages, and buying against leasing a vehicle.
- Insurance — life, health, disability, property and liability coverage, and how needs are estimated.
- Investments and retirement — stocks, bonds, mutual funds, diversification, retirement accounts and estate basics.
Who it’s for
Undergraduates taking personal financial planning or personal finance with the Gitman 13th edition, in business, finance or family and consumer science programs, and students taking the course as a practical elective.
How to use it (the right way)
Keep a financial calculator or spreadsheet beside you and redo every computation yourself instead of reading the worked figure. Study first and test second: the questions are a diagnostic, not a replacement for the reading. Attempt each set closed-book, write a one-line reason for your choice, and compare that reasoning with the rationale. Use it as a study aid, consistent with your institution’s academic-integrity policy; it strengthens preparation rather than standing in for coursework.
Sample question (shows the format — your download contains the full set)
Q. You invest $5,000 today in an account paying 6% compounded annually and leave it untouched for 12 years. Approximately what will it be worth, and which concept does the calculation illustrate?
- A. $8,600 — the future value, found by adding 6% of the original sum for each of the 12 years.
- B. $10,061 — the future value of a single amount, where interest is earned on accumulated interest as well as on principal.
- C. $2,485 — the present value of the deposit, discounted over 12 years.
- D. $5,360 — the balance after the first year, since the stated rate is annual.
Answer: B. Compounding multiplies the deposit by 1.06 twelve times, so $5,000 times 1.06 to the power of 12 is about $10,061. The rule of 72 gives a quick check: 72 divided by 6 is 12 years to double, and the answer is a little more than double. A applies simple interest, adding $300 a year for twelve years to reach $8,600, which is the exact error this chapter exists to correct. C runs the calculation backwards, discounting instead of compounding. D stops after the first year and ignores the remaining eleven.
Edition & format
- Matches: Personal Financial Planning, 13th Edition by Lawrence J. Gitman (ISBN 9781111971632).
- Format: Digital PDF, delivered instantly after checkout.
- Access: Lifetime access — re-download from your account any time.
Please confirm the author, edition and ISBN above match your syllabus, as later editions of this title appear under a different lead author.
Frequently asked questions
Is this the current edition? It is written for the Gitman 13th edition, ISBN 9781111971632. Later editions of this title carry a different lead author, so check the name as well as the edition.
How do I receive it? Digitally and immediately — the confirmation page and your email both carry the PDF link.
Do all questions include rationales? Yes, an explanation accompanies every question, covering the keyed answer and the tempting alternatives.
Is using a test bank allowed? Yes, as a preparation and self-assessment tool. Your institution’s academic-integrity policy governs how study material may be used, so read it and stay inside it.
For more practice across personal finance, investments and accounting courses, browse our Business & Accounting Test Banks.
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