information provided in Table 1‚ if the Halls continue making minimum payments on their outstanding debts‚ how much money will they have left over for all other expenses? Income = $ 50.000 + $ 25.000 = $ 75.000 Net Income after Taxes = $ 75.000 – (0.28 * $75.000) = $ 54.000/year that is $ 4500/month Credit card = 3% of card balance=3%*10‚000 = $ 300 Car Loan | | Term years | 2 | Term months | 24 | Annual Interest Rate | 5.99% | Monthly Interest Rate | 0.50% | v | 0.995033126 | v term | 0.8874 |
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Principles of Finance Bang Dang Nguyen b.nguyen@jbs.cam.ac.uk http://www.jbs.cam.ac.uk/research/faculty/nguyenb.html Principles of Finance Page 1 Course Road Map I. Present Value and Stock Valuation II. Project Appraisal and Capital Budgeting III. Risk and Return and Portfolio Selection IV. CAPM and WACC V. Capital Structure and Dividend Policy VI. Options and Real Options Principles of Finance Present Value - Page 2 Present Value - Contents • Valuing Cash Flows – The Time
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has a car payment of $249 per month. The average utilities are: Electricity‚ $79; Gas‚ $49; Water‚ Sewer‚ and Trash‚ $27. In addition‚ Joe is saving $100 per month. How much of his monthly salary would be committed to utilities and other expenses? $504.00 would be committed to utilities and other expenses. 4. If Joe’s net income after taxes each month is equal to 74% of his gross wages‚ how much is his net income? $1776 a month would be Joe’s net income. 5. Joe’s total monthly payment to the bank
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Student answers will vary. Encourage students to consider both their financial situation and personal factors. 2. Based on the following data‚ would you recommend buying or renting? Rental Costs Buying Costs Annual rent‚ $7‚380 Annual mortgage payments‚ $9‚800 ($9‚575 is interest) Insurance‚ $145 Property taxes‚ $1‚780 Security deposit‚
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Variable | Petrol per month | 150 | Variable | Food per month | 70 | Variable | Season ticket for theatre per annum | 420 | Variable | Credit card repayments monthly | 150 | Variable | Interest on credit card monthly | 50 | Variable (interest rates could rise/ fall) | Clothes per annum | 1‚000 | Variable | If buying a house | | | Potential mortgage per month | 450 | | Mortgage deposit | 5000 | | Lawyers’ fees | 1 500 | | | Year 1 | Year 2 | Year 3 | Total | Income | £ | £ | £ | £ |
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CertiÑcates Fannie Mae REMIC Trust 2002-46 The CertiÑcates We‚ the Federal National Mortgage Association (""Fannie Mae ’ ’)‚ will issue the classes of certiÑcates listed in the chart on this page. Payments to CertiÑcateholders We will make monthly payments on the certiÑcates. You‚ the investor‚ will receive ‚ interest accrued on the balance of your certiÑcate‚ and ‚ principal to the extent available for payment on your class. We may pay principal at rates that vary from time to time. We may not
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Mid-term Quiz Study Guide Chapter One 1.1 List the 5 steps in the personal financial planning process: 1. Analyze your current finances 2. Develop goals 3. Identify and evaluate strategies to achieve your goals 4. Establish and implement your plan 5. Reevaluate and revise your plan as needed 1.1 Self Check Define personal finance and personal financial planning: * Personal Finance- a specialized area of study that focuses on individual and household financial decisions
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expenditures. Did Megan and Kevin have a cash surplus or a cash deficit in 2001? What impact does the 2001 cash surplus (deficit) have on the following year=s (January 1‚ 2002) balance sheet? 3. Based on Megan and Kevin ’s financial statements‚ calculate the following ratios: 1. Savings ratio 2. Liquidity ratio 3. Solvency ratio 4. Debt service ratio 4. Based on the information in the original case‚ from Megan and Kevin ’s financial statements‚ and from the
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(2) 1. The gradual elimination of a liability‚ such as a mortgage‚ in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest. 2. Writing off an intangible asset investment over the projected life of the assets. Read more: http://www.investorwords.com/200/amortization.html#ixzz2GXWACfP2 Applications of amortization In business‚ amortization refers to spreading payments over multiple periods. The term is used for two separate
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who works for a total of 42 years‚ what is the present value of the amount she will earn while on sabbatical if the interest rate is 6% (EAR)? Timeline: |0 |7 |14 | | | |42 | | | | | | | | | |0 |1... [continues] 5-4) 10% APR compounded monthly‚ 10% APR compounded annually‚ and 9% APR compounded daily. Compute the EAR for each investment choice. (Assume there are 365 days in the year.) 1. 10% APR rate
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