Personal Finance

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• Personal Finance Research Paper

  ...CHAPTER 4 TEST A KEY True or False 1. True 2. False—A debit card will work just fine when renting cars and checking into hotels. 3. False—The debt snowball begins with your smallest debt. 4. True 5. False—If you have to loan money to a friend, give it to them as a gift. Never co-sign a loan. Matching 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. i. b d j c k e l a f Multiple Choice 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. c d a a b d a d c c b d c d a Short Answer: 31. The adult market is saturated, and credit card companies know that people are loyal to their first credit card. © Copyright 2008 The Lampo Group, Inc. For classroom use only. FOUNDATIONS in PERSONAL FINANCE Name____________________________ Date_____________________________ CHAPTER 4 TEST A TRuE oR FAlsE: Analyze each statement to determine if it is true or false. If it is false, change the statement to make it true. 1. Living without debt in today’s society requires a paradigm shift. ______________________________________________________________________________________ 2. You need a credit card in order to rent cars and check in to hotels. ______________________________________________________________________________________ 3. The first debt in your debt snowball is the one with the highest interest rate. ______________________________________________________________________________________ 4. The typical millionaire drives a...

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• Personal Finance Management Essay

  ...analysis. Introduction Personal financial management is an important tool for an individual or any business to assess their financial situation and to make investment decision. Personal financial management tools include personal budget, cash flow statement and balance sheet. This memo discusses in detail the age, educational background and financial standing of Joy Peters. It also discusses the concerns, finding and recommendation made to our client for improvement of their financial condition. summary of the facts Joy’s age is 29 years and his wife Christina is 28 years old. They currently live in Olympia, Washington with their 3-year-old son. Joy works in the US Army and his wife is full-time student working on her bachelors in criminal justice. Joy is also doing an online course in cyber security from university of Maryland. The joy is the main bread earner in this family. Christina is the full time student and does part-time job from home. There combined income is 60,000 dollars. They have car loan of 20,000 and owe 7000 dollars on credit card. The concern is that they don’t have much savings saved up for an emergency and too much credit card to pay. Their goal is to maximize savings and pay their credit cards. summary of key items: Looking at the personal budget, there was only difference of 170 dollars between the projected and actual cost. This is normal because of the cost of variable...

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• Personal Finance Week 5 Research Paper

  ...Title Exploring Strategies for Avoiding and Managing Debt Signpost A, Part 1: Learning Check When does it make sense to use a credit card? You can use credit any time as long as you plan to pay off the card at the end of the month. Don't use a credit card unless you need it to gain a benefit or because the transaction requires it. Just be careful not to over-use your credit card and you'll be fine. Really, just never use a credit card. They're dangerous. How many credit cards should I have? Do not get a credit card under any circumstances! Get as many as you need in order to gain all of the benefits possible. Make sure you have a few cards with different interest rates and options. Limit yourself to a small number of credit cards. I want to buy something but don't have the cash on hand. Is it ok for me to put it on a credit card? Just don't use credit cards at all! No, never. You should only buy things on credit that you can pay for with cash. Sure, just don't go crazy. That's what credit cards are for, after all. You can do this only if you have a specific plan in place to pay off the debt. Signpost A, Part 2: Learning Check I heard that there are actually several credit agencies. Is that right? No, there is only one. Yes, there are three. Yes, there are five. Yes, there are seven. What does the score range from? 1 to 100. 100 to 850. 300 to 850....

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• finance Research Paper

  ...operating change restrictions, (b) compensating balance, and (c) anual cleanup. A line of credit is an agreement between a commercial bank and a business that states the amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time. In a line of credit agreement, a bank may retain the right to revoke the line if any major changes occur in the firm's financial condition or operations. To ensure that the borrower will be a good customer, frequently a line of credit will require the borrower to maintain compensating balances in a demand deposit. In some cases, fees in lieu of balances may be negotiated. To ensure that money lent under the credit agreement is actually being used to finance seasonal needs, banks require that the borrower have a zero loan balance for a certain number of days per year. This is called the annual cleanup period 16.8 What is a revolving credit agreement? How does this agreement differ from the line of credit agreement? What is a commitment fee? A revolving credit agreement is a guaranteed line of credit. Under a line of credit agreement, a firm is not guaranteed that the bank will have funds available to lend upon demand, while under the more formal revolving credit agreement the availability of funds is guaranteed. Since the lender under the revolving credit agreement guarantees the availability of funds, the borrower must pay a commitment fee, a fee levied against the...

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• Finance

  ...The real estate development in Malaysia is supported by two crucial finance; i.e. Bridging Finance and End Finance. Bridging finance is a loan amount provided to the developer on top of any other loan obtained for the project. It is usually given as a short period with higher interest rate subject to security provided, and usually provided after the planning approval or at the end of the completion of the construction works of the project. Bridging finance is available in various forms; i.e. ‘term loan’ with a fixed repayment period, overdraft facility or a combination of both and can be arranged in the form of direct loans or “Syndication’ loan (indirect). Direct loan is provided by lenders direct to the borrowers without the involvement of third parties and the loan amount from the bank/financial institution is smaller with a lower risk. The indirect loan however, is obtainable when a group of commercial and investment bankers each agrees to give an advance portion of funding. It is usually provided for large scale project which needs ‘large-scale financing’. Traditionally, the financing is arranged by a single bank at a narrow interest rate spreads over the lender’s cost of fund. The differences between these two loans are the amount provided and the documentation. End financing is a loan provided for the purpose of purchasing a property. Given usually after the Bridging Finance, its...

  1688  Words | 6  Pages

• Personal Budget Balance Sheet, Cash Flow Essay

  ...Personal Budget, Balance Sheet, and Cash Flow Statement Memo To: Mr. Christopher De Maline From: Date: 02/17/2014 Re: Personal Budget, Balance Sheet, and Cash Flow Statement Dear Mr. De Maline, Saving money is extremely important however; some people do not have healthy savings thus leading them to financial instability. Therefore, being a good steward over your finances should be consistent and begin at an early age and progress as you age. This will provide an effective growth pattern to allow future financial security. The purpose of this memorandum is to evaluate my client’s financial outlook, their personal budget, balance sheet, and cash flow statement and provide recommendations for improvement of their financial situation. My client, Chauncey Latham is 51 years old and a police officer. He is married and has one dependent. Kyle Latham, Chauncey’s wife is 47 years old and is currently not working. Prior to her unemployment, Kyle annual earnings were $96,000 a year. They live is a nice 4-bedroom house, in a great community with a sought after school district. The family has a comfortable looking life, though their financial outlook is pretty grim. Together Chauncey and Kyle earn $85,000 a year, which includes Chauncey’s off duty work and Kyle’s unemployment benefit. Their life savings have dwindled down the emergency fund is very low, and their credit card debt is high. The balance...

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• Assignment 5 Essay

  ...Assignment 5: Credit and Loans (25.0 points) 1. If you are borrowing money and paying interest, would you prefer an interest rate that compounds annually, quarterly, or daily? Why? (2-4 sentences. 1.0 points) If i was borrowing money and paying interest i would prefer that the interest rate was annually. Annually means yearly which means i would only have to pay interest that one time. It might be an expensive amount of money to come up with but at least it’s paid off and you no longer have to deal with it. 2. In your Section_5 folder, navigate to and open the Example_Credit_Report, and then answer the questions below. a. What is the total balance of Jessie Robinson's real estate account? (0.5 points) $19,100.00 b. What is the total balance of Jessie Robinson's revolving account? (0.5 points) $500.00 c. Has Jessie Robinson ever applied for bankruptcy? (0.5 points) No d. How many creditors have made inquiries about Jessie Robinson's credit? (0.5 points) Three e. Do you think Jessie Robinson usually pays bills on time and in full? (1-2 sentences. 1.0 points) I do believe that Jessie Robinson pays his bills on time and in full. f. Do you think Jessie Robinson's credit score would be great, normal, or poor? Why? (1-3 sentences. 1.0 points) I think that Jessie Robinson’s credit score would either be normal or great because to me it looks as if he always pays his bills on time and has never filed for bankruptcy. 3. Describe a real or made...

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• Buying on Credit np Essay

  ...Student Teacher English November 30, 2014 Buying on Credit In a world that is heavily reliant on economics and personal finance on a global scale, it is necessary for people to have the availability of credit. Both individuals and businesses use credit to facilitate purchases that they would not have been able to afford in cash. Having access to credit can be either an advantage or a disadvantage, depending on whose perspective you look at it from. The ease that is currently experienced with accessing credit is proof that it is a necessary tool for people to be able to progress in life. According to the definition given by the Webster’s dictionary, credit is transferring goods and services in confidence. with an agreement to pay at a later date. Credit transactions began in colonial times. when it was only the privileged people who were able to access credit. Farmers were the main ones who needed credit on a regular basis to help with their livestock. There were no charges for accessing credit in those times, instead, the cost was directly added to the price of the loan products (Omar et al.). Consumers who make credit, and not cash purchases are major players in the economy. The ease of accessing credit also comes with the responsibility of being able to repay it on time and in full. Many people are able to access credit, but not all are able to repay their debt when it falls due. To this end, many are indebted to the lending institutions...

  1676  Words | 5  Pages