FIN 201 COMPLETE UNIT DISCUSSIONS-POST
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FIN 201 Complete Unit Discussions-POST
FIN201
FIN 201 Unit 1 Discussion Latest-POST
Follow this link to the following web page:
Finance Jobs Guide – Careers in Finance
Review the page thoroughly and begin to think
about and explore what options may be available to you in the world of
Corporate Finance. Respond to the forum by telling everyone: Which of the jobs
and career areas in finance seems most interesting to you and why? What
specifically about the position and its responsibilities interests you? Why do
you feel the job fits with your career interests, aspirations and skill set?
Also, review the hyper-links for “recommended
books on jobs in Finance” (mid way down the page). Based on your review of
each, which book do you think would serve you as an interesting resource to
assist in your job search and tell us why please?
FIN 201 Unit 2 Discussion Latest-POST
R * T = 72
The Rule of 72 is a formula that investors
often use to estimate the amount of time required to double the value of an
investment. This formula consists of two variables and one constant, as
follows:
- The variable R (representing the rate of return or
interest)
- The variable T (which is the variable for time)
- The constant 72
The premise of the formula is that if you know
either one of the two variables, you can use simple algebra and solve for the
missing variable, indicating either how long it will take for an investment to
double, or what rate of return (or interest) one must earn in a given amount of
time to double the investment.
For example: If a dollar amount of $1000 grows
to $2000 in ten years, you see that the investment has doubled in value. Now,
lets use the Rule of 72 Formula to evaluate:
rate * time=72.
Plug in 10 years as the time variable, and the
formula becomes…
Rate * 10 years=72. Thus, we can solve for the
rate: R = (72 / 10 years) … or 7.2% !
Therefore, in order for an investment of
$10,000 to double in value to $2,000 in a 10 year time frame, the investor must
earn 7.2% return (or interest as the case may be) on the investment on an
annual basis.
DISCUSSION: Give an example of a purchase, an investment or another
matter in your personal financial life when this formula would have been a
useful Financial Planning tool to help you to prepare for the event. If no such
event has occurred in your past life, then think if an event that will occur in
the future for which you must plan, and accumulate a lump sum of money in order
to make the event a success.
The examples in the text show a unique
characteristic (think: positive or negative sign) associated with how the
PRESENT VALUE (PV) of a monetary sum (when given) should be expressed when you
are solving for future value (FV) of that sum.
What is that characteristic? What questions
would you ask a mortgage lender if you used the Time Value of Money
calculations to copare loan terms with what you “expect” to pay (or owe) based
on your calculations. If you’ve never considered a home loan, substitute a car
loan or (dare I say it …) a student loan.
FIN 201 Unit 4 Discussion Latest-POST
Search the Internet for any short article
related to finance and then post a couple of sentences here about what you’ve
learned or what your thoughts are. Please also post a link to the article so
others can access it.
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