...Simple Interest (a) If $1,000 earns 3% annual simple interest, how much interest is earned and what is the future value in 4 years? (b) In order to have a balance of $2,000 in 3 years, how much money must be deposited now at 5% annual simple interest? Question 1 options: | Question 2 Suppose $5,000 is borrowed at 9% add-on interest, with monthly payments for three years. How much is paid in interest and what is the amount of each monthly payment? Question 2 options: | Question 3 $2,000 is deposited into an account paying interest compounded monthly. What will the balance be after 12 years, if the annual interest rate is 1%? 2%? ... 12%? (Complete the following table.) Annual interest rate, compounded monthly | Balance after 12 years | 1% | | 2% | | 3% | | 4% | | 5% | | 6% | | 7% | | 8% | | 9% | | 10% | | 11% | | 12% | | | Question 4 Carol starts with 1 cent. Suppose that at the end of the first day, she earns 1 cent interest, for a balance of two cents. At the end of the second day, she earns two cents interest, for a balance of four cents. At the end of the third day, she earns four cents interest, for a balance of eight cents. Continuing in the same way, what will Carol's balance be at the end of 30 days? Question 4 options: | Question 5 Suppose $1,200 is placed in a savings account earning 4% annual interest. Determine the balance after 10 years if interest is compounded. (a) annually ...
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...Table of Contents Risk Management Plan for Buying a House and Moving into the House 1 Executive Summary 3 Introduction 4 Project Description 5 Project Sizing 6 Stakeholder Analysis 8 Risk Breakdown Structure 9 Probability – Impact Matrix 10 Risk Register 13 Risk Reviews and Reporting 15 Conclusions and Recommendations 15 References 17 List of Figures Figure 1 – Buying a House 3 Figure 2 – Buying a House and Moving into the House Project – Project Sizing Tool 7 Figure 3 – Buying a House and Moving into the House Project – Stakeholder Analysis 9 Figure 4 – Buying a House and Moving into the House Project – Risk Breakdown Structure….. 10 Figure 5 – Buying a House and Moving into the House Project – Probability and Impact Matrix 11 Figure 6 – Buying a House and Moving into the House Project – Risk Prioritization 12 Figure 7 – Buying a House and Moving into the House Project – Probability and Impact Scales. 12 Figure 8 – Buying a House and Moving into the House Project – Probability and Impact Scoring Scheme 12 Figure 9 – Buying a House and Moving into the House Project – Risk Register 13 RISK MANAGEMENT PLAN FOR BUYING A HOUSE AND MOVING INTO THE HOUSE PROJECT Prepared by: Angel Wallace, Home Buyer, Buying a House and Moving into the House Project Approved by: Ramon Vargas, Home Buyer, Spouse Version: 1 Date: October 21, 2012 Figure 1 – Buying a House Note: From the website: http://www.beazer.com/new-homes-for-sale/Dallas-TX-Willow-Ridge-available_home-Baxter_50'-22932...
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...New House - Risks and Benefits XCEO-212 May 13, 2011 A New House - Risks and Benefits A few of the government bodies that influence national fiscal policies that potentially affect the housing market are: Federal Reserve System (FED), Housing and Urban Development (HUD), and the Federal Emergency Management Agency (FEMA). “The Federal Reserve System of the U.S. is the central banking system of the U.S., comprised of the Federal Reserve Board, the 12 Federal Reserve Banks, the Federal Open Market Committee, and the national and state member bank. Its Primary purpose is to regulate the flow of money and credit in the country” (InvesgtorWords.com, 2011). The federal secure interest affects variable interest rates of mortgages by using the interest only loans, which you just pay the interest and no principal, so when the housing price falls, refinancing is impossible. The reason refinancing is impossible, is because there is no equity or profit made and the house value diminishes and there is no way to refinance when the house is worth less than the mortgage amount. When the value of your home goes up, then you can refinance. The HUD Act affects mortgages for “single-family and multifamily dwellings and extending loans for home improvements and for the purchase of mobile homes; channeling funds from investors into the mortgage industry through the Government National Mortgage Association; and making loans for the construction of rehabilitation of housing projects for older...
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...Running head: PURCHASING A HOUSE RISK PAPER Purchasing a House Risk Paper Keller Graduate School of Management Project Risk Management PROJ 595 Dr. Susan Orr August 04, 2013 Purchasing a House Risk Paper INTRODUCTION The many advantages to owning a home have been well publicized. However, the above satistics make it clear that owning a home is not without risk. To form a complete picture, you, the prospective buyer, need to consider the potential risks and disadvantages of home ownership as well. Understanding these disadvantages beforehand will give you a better chance of minimizing their impact and avoiding the fate suffered by these homeowners. RISKS IDENTIFICATION There are many risks in buying a new house such as: • The opportunity cost of investing in an alternative investment is very high because the entire cash and future income stream is tied up into one asset a home, which may or may not appreciate. • The house is an undiversified investment, so if the market tanks as it has, game over. • Knowing that we do not own our home, the bank does. • A lot of cost connected to home ownership, such as repairs and insurance and fees and potential hazards I have not considered. • If I lose my job, game over, this will put a lot of stress on me. • There is a chance that your new home will lose value. Luckily, in general, the longer you own your home, the less likely a loss becomes. Loss of value is typically a short-term problem, possibly due to the local...
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...STUDY ON BUILDER MARKET & HOME LOAN PROCESS REVIEW Summer Internship Project Report Submitted towards Partial Fulfilment Of Post Graduate Diploma in Management (Approved by AICTE, Govt. of India) Academic Session 2011 – 2013 CERIFICATE This is to certify that Abhinav Prakash, student of PGDM (Full time) 2011-2013 batch, IMS GHAZIABAD, has exceuted his project in finance under my supervision and guidance . During the project execution he was found to be very sincere and attentive to small details, which were discussed with him. I wish him good luck and success in his future studies and endeavor. PREFACE The PGDM program is well structured and integrated course of business studies .The main objective of practical training at PGDM level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial exposure helps to gain real life knowledge about the industrial environment and business practices. The PGDM provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects...
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...Risk Paper 1 Pm595 Risk Paper: Buying a new house Project Risk Management Professor: James Reckon By Magued Farag May 24, 2014 TITLE: BUYING A NEW HOUSE TABLE OF CONTENTS INTRODUCTION RISKS IDENTIFICATION RISKS RANKING MATRIX RISKS MONITORING CONCLUSION REFERENCES * INTRODUCTION Whenever considering a major purchase in life one must carefully consider the risks associated with making these purchase decisions. These decisions should be treated as projects in such a way that proper planning, analysis, risk assessment and contingency should all be aspects of the purchase process whether formal or informal. In this paper, I will discuss about a project that many people are familiar to: buying a new house. Few years ago, I moved to a new area and was trying to decide whether or not to purchase a new house, and if so, where should I buy it. I also considered if I should buy a preexisting new house or hire a builder for a new house. Every option had its own set of potential risks. If I continued to rent, was this really just throwing away money. If I purchased a house, could I afford it and was I buying the best house for me and my family? I approached it like any other project, with interviewing people, note collecting, collating, and interpreting the data. After reviewing my expenses and income and examining the tax advantages, I decided to buy a house but knowing that several risks may accompany my decisions, these risks rank from high probability...
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...KSFC schemes interest rate for term loans varies from 13.00% to 16.50% .There’s a 4.00% pa interest rate for term loans specifically for SC/ST entrepreneurs. INTEREST RATE STRUCTURE(Term Loans) Sl.No CATEGORY OF BORROWERS/LOANS INTEREST RATE (%) 1 1. All Term Loans (including WCTL) to Micro, Small and Medium Industries, 2. SRTOs and Acquisition of private vehicles, 3. DG Sets, Mobile Generators 4. Tourism related activities: Amusement parks, Restaurants, Travel and Transport, Tourist Service Agency, Service Apartments, Restaurants & Hotels, Catering, Resorts/ Mobile Canteen. 5. Health Care Services*: Assistance to Qualified Medical Practitioners/ Doctors, Hospitals/ Nursing Homes, and Electro-Medical Equipment. 6. Assistance to qualified...
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...Microfinance Project to the Lives of Beneficiaries Microfinance is a powerful economic development tool. Its unique approach to poverty alleviation targets the working poor, a segment of society that is typically underserved by conventional economic development strategy. Microfinance programs deliver basic financial services to the vast numbers of business owners with little or no access to the credit, deposit, and savings mechanisms offered through commercial banks.1 ____________ 1Understanding Microfinance and its Contribution to Economic Growth, The Palestinian Network. I. Project Background Many of the people in the community have difficulty meeting their needs. This situation is aggravated by the fact that, for most of them, only one spouse may have a regular job, while the other spouse stays home because s/he cannot find work or has to care for their children. The desires of those who stay at home to help their working spouses earn is seen by the former’s engaging in vending viand, snacks or small grocery store “sari-sari store”, etc. They have acquired basic skills needed in running a micro-business, but their capital either gets used up for the provision of their particular venture. Most often, they solve this problem by resorting to loan sharks. Virlanie Foundation, Inc., in its effort to help alleviate the street children’s problem by approaching it from a preventive point of view, started the loan assistance project in 1993...
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...Loan project: Buying a House in Virginia Beach, VA Task 1: House Description I decided to choose a house in close vacinity of where I currently reside because my family is in the process of looking for a home. Currently, we live in military housing, and this is an excellent chance to view different homes, areas, schools, and costs that are associated with the buying a home. The informative process will prove to be benefical on both a professional and personal level. Asking Price: $430,000 Real Estate Taxes: $3,277.32 (found at: http://www.vbgov.com Virginia Beach, VA real estate assessor database) Purchase Price: $352,400 (The 2013/2014 Assessed Property Value) Current market Interest Rate (30 Yr. Fixed Rate): 4.047% through Absolute Mortgage Company on www.bankrate.com by zipcode 23464 Task 2: 20% Down Payment: $352,400(.20) = $70,480 Amount Financed: $352,400-$70,480=$ 281,920 Monthly Mortgage Payment: $1358.58 Payment Calculation: * Present value PV = $281,920 * Annual interest rate r = 0.04047 * Interest compounded m = 12 times per year * Number of payments n = 30 years X 12 months per year= 360 * Interest rate per month i=r/m = 0.04047/12 The monthly mortgage payment PMT is: PMT=PV * i/1-(1+i)^-n = $281,920 * 0.0033725/1-(1+0.0033725)^-360 = $281,920(0.0048012887) = $1353.58 Remark: For accuracy of the payment amount, rounding of two decimal points was not completed until the last step. Task...
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...* Ways To Overcome The High House-Loans Rejection Rate We all know it's tougher to get a home loan these days compared with just a few years ago. Banks tightened their credit standards dramatically during the credit crunch, and lenders now accept only 55% of all mortgage applications. according to the latest annual statistics from the Mortgage Bankers Association: Overall lending by U.S. banks plunged by 7.4% in 2009, the sharpest decline since 1942, based on FDIC data. And so far in 2010, banks have yet to ease lending standards. Here are ten reasons people get turned down for a housing loan and some advice on how to overcome these obstacles. 1. BAD OR LOW CREDIT SCORE * You cannot build a house if the foundations are flimsy, When it comes to loan approvals, banks use a similar analogy. If you have a low credit score, you will be denied a home loan rejection even if you fulfill all other conditions. Credit score is considered to be the most important factor by the banks while disbursing a loan." * Credit score reflects a consumer's behavior towards the financial transactions. In some ways, it is a mirror to his financial habits and underwriters base their decision and develop risk-based pricing based on the credit score," says Anil Sachidanand, MD & CEO, Aspire Home Finance Corporation. So, if a person has defaulted or delayed the payment on any kind of loan or credit cards, it will have a negative impact on the credit score. Other factors like being guarantor...
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...Simulation Review HCS/405 September 2, 2013 Elijah Heart Center (EHC) is a healthcare organization that focuses on patients with heart problems. This 140 bed cardiac care hospital located in New York function as an advanced coronary care center, 120,000 square feet cardiac catheterization labs, surgical suits for open heart surgery, ancillary equipment for radiology, labs, nephrology, pulmonology and service for full spectrum of cardiovascular patients. There is also a full range of outpatient cardiac diagnostic services and rehab programs for patients recovering from heart attacks, open heart surgery, and coronary angioplasty. Although the organization is having some financial problems the patient volume is stable and increasing. As the senior financial consultant I will be working to get things financially under control, I will present a few plans for short and long term goals. I will be working with a great team that includes Gilbert Sanchez, Saiku Takeuchi, Zachary Macholz, and Dr. Brenda Lopez. The Elijah Heart Center has managed to stay focused and in operation do to the satisfied patients that need the services. There is a great team that provides great patient care but there has been a lot of poor decision making in the past that is resulting in a lot of profitable problems. In May 2x03 the financial department reported facing a potential working capital shortfall. In an emergency the hospital might not have enough cash to sustain itself...
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...House purchased with help from the FHAThinking about buying a home? We have information that can help! Got questions? Talk to one of our friendly assistants.Figure out how much you can affordWhat you can afford depends on your income, credit rating, current monthly expenses, downpayment and the interest rate. | | | Who We AreAbout UsOur goals are to improve housing standards and conditions, provide an adequate home financing system through insurance of mortgage loans, and to stabilize the mortgage market.Contact UsPhone: (202) 708-1112 Email: federalhousingadmin@hud.gov Web: www.hud.gov | | | Federal Housing admin. 451 7th Street S.W., Washington, DC 20410 | | | | | | | Federal Housing admin. | Help us help you! | | Are you in danger of foreclosure?If you are experiencing difficulties making your mortgage payments, you are encourage to contact your lender or loan servicer directly to inquire about foreclosure prevention options that are available. If you are experiencing difficulty communicating with your mortgage lender or servicer about your need for mortgage relief, there are organizations that can help by contacting lenders and servicers on your behalf. | | | “I never thought I could afford a new house, but with help from the FHA my family is happier than ever!” – Anonymous FHA CustomerIn 1965 the Federal Housing Administration became part of the Department of Housing and Urban Development (HUD). Since 1934, the FHA and HUD have insured...
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...Anderson Simulation Review In this paper I will talk about a simulation review I completed on the financial hardships of Elijah Hearth Center (ECH), a one hundred and forty bed cardiac care inpatient hospital as well as outpatient and rehabilitation services located in New York City. Even though the center’s revenue is increasing as well as ratio of new patients they are not seeing the profits increase at the same level. Because of their low profit margin the center is looking to save $750,000 in the first quarter for a few projects that they feel will help raise their profit margin; They have indicated three areas to work on, phase I is to bridge a working capital shortage to have more operating cash on hand, phase II is to evaluate funding options for the acquisition of additional medical equipment to better serve their patients and phase III is to evaluate several options for additional funding for the expansion of building a new center to house an extra one hundred rooms to efficiently accommodate new patients. Phase I: Capital Shortage The two cost cutting option I choose were to reduce agency staff because I saw that the salary they were paid was double the salary of the hospital staff and patient care would be very slightly affected by this reduction which was another reason I felt that this cost cutting option was a good choice for the center, patient satisfaction is very important for the success of a hospital, by reducing agency staff the center would save $2...
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...Leah Dolce ECO 103 Mortgage Project While doing this project, I kept finding myself to be very indecisive as to what I wanted in a home and what things would be important to me if I were to purchase one. This project helped me understand the basics of buying a home such as: where I would want my kids to go to school, how many bedrooms, how many bathrooms, property, neighborhood reputation, and much more. I had very little knowledge about most of the surrounding area so now I know what kind of research I would have to do to make sure I know exatcly what I want when purchasing a home. I did know I wanted it to be at least 3 bedrooms, 2 bathrooms, and have an updated kitchen. I was able to find those things in the home I selected but what I didn't realize was what the cost would be. There is a huge financial difference between a 15 year fix and a 30 year fix mortgage. For the home I selected it was a $522.76 difference in the monthly payment and a $91,271.79 difference in the amount of interest I would be paying for the life of the loan. If I was abel to afford such a hefty, monthly payment I would choose the 15 year mortgage because in the long run it would be cheaper. The lesson learned here, though, is find a more affordable house and make updates as you go along. All -in-all I had fun doing this project and it helped me understand the process into buying a home and gave me great internet resources to do...
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...Influence Buying Home Behaviour in Dilly, East Timor Connie Susilawati Fernando Baptista Anunu Petra Christian University Surabaya, Indonesia Key words: low cost housing, buying behaviour, consumer behaviour, motivation, East Timor Demand of low cost housing increased from 1995 to 1997 which is shown by the number of housing loan approval. In order to develop the most suitable marketing plan, developer needs to know some factors which influenced to the decision making process of buying house. This research used a residential development in PT Delta Comoro Permai, Dilly as a case study. A survey to homeowners has been done to evaluate the motivation and perception factors in buying home behaviour. The survey has been done on the 3rd August to 29th August 1998. In this study, four main components have been examined. Physical and linkage are not as important as environment and utilities for the homebuyer. Moreover, the result is consistent with developer’s motto ‘clean, secure, aesthetic, healthy and prosperity’. This study provides further recommendation in the environment and utilities components for the new development in the future. Introduction In 1998, East Timor has 14,874 square meters land area which occupied by 747,527 residents. The population growth rate was 3,02% (Anunu, 1999: 1). The above conditions created demand on proper housing with affordable cost. Demand of low cost housing increase from 1995 to 1997 which is shown by the number of housing loan approval...
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