1. You won't have to pay federal or state income taxes on the money you withdraw from your 529 College Savings Plan if the money is used to pay for qualified higher-education expenses.

True or False?

2. In general, level term life insurance is high-benefit coverage you buy for a set period of time. Premiums are typically lower than for permanent insurance such as universal life policies.

True or False?

3. Tamra is having difficulty deciding whether to put her savings in the Albina Community Bank or in the Umpqua Bank. Albina offers a 12% rate compounded quarterly, and Umpqua offers 14% compounded semiannually. Tamra has $40,000 to invest and expects to withdraw the money at the end of five years. Using the tables found in your textbook, determine which one of the following is the best deal.

a. albina for last two years

b. umpqua for first two years

c. umpqua

d. albina