LLQP Exam Dumps : Life License Qualification Program (LLQP)

Comprehensive and Detailed Explanation From Exact Extract:

Monthly expenses: $4,000

Total monthly income from all sources: $700 + $460 (orphans) + $790 = $1,950

Monthly shortfall: $4,000 – $1,950 = $2,050

Annual shortfall = $2,050 × 12 = $24,600

However, based on the question’s typo indicating Julie's disposable income is $1,500, then shortfall = $2,500/month = $30,000/year.

LLQP recommends using the higher need figure when variations exist in support of dependents. Closest option: $39,600

This question is a direct application of the time value of money concept—specifically present value (PV)—as taught in the LLQP Segregated Funds and Annuities material. Present value “works backwards from a future date” and answers the question: how much is needed now to achieve a future savings goal. The LLQP text provides the formula:

PV = FV ÷ (1 + interest rate)ⁿ

Here, Davy’s future goal is FV = $200,000, the annual return is 3% (0.03), and the time horizon is n = 10 years. Substituting into the LLQP formula:

PV = 200,000 ÷ (1.03)¹⁰

(1.03)¹⁰ ≈ 1.343916, so:

PV ≈ 200,000 ÷ 1.343916 ≈ $148,818.9, which rounds to $148,819.

Therefore, if Davy has at least $148,819 in his RRSP today and earns an average of 3% per year for the next 10 years with no additional contributions, he should reach approximately $200,000 by age 65.

This aligns exactly with the LLQP explanation that PV calculations are used “to help a person determine how much needs to be saved today to yield a specified pension at a future date.”

Comprehensive and Detailed In-Depth Explanation: The Chambre de la sécurité financière (CSF) Code of Ethics (Section 11) and Distribution Act (Section 18) prohibit representatives from using misleading or self-aggrandizing statements that could unduly influence clients. Flavie’s business card slogan, “One of the company’s 10 best salespersons,” and her verbal boast about earnings suggest superiority without substantiation, potentially pressuring Julius. Option B, removing the slogan, aligns with ethical standards to ensure representations focus on client needs, not personal accolades. Option A (timing of card) is irrelevant to compliance. Option C (second meeting) doesn’t address the content issue. Option D (commission disclosure) is unnecessary, as disclosing compensation structure is permissible if relevant. The Ethics manual emphasizes professionalism and prohibits exaggerated claims.