...Financial Project Bruce Evans Dr. Mohamad S. Haj-Mohamadi MAT 104 – Algebra with Applications February 12, 2012 Strayer University Financial Project Explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25. Considering the housing bust of 2008 and the current state of the U.S. economy, this is a situation that far too many of us have found ourselves facing. To premise, when considering paying off a simple interest loan or mortgage before its maturity date, one must also understand that your Principal and Interest (P&I) payment is still based on the original amount financed at the original interest rate. Paying monies over and above P&I will subsequently reduce the term in which you finance the loan; yet, without penalty. If your current P&I is $706.12 at 5.75% fixed for 30 years and you want to pay off your mortgage five years early, then you would need to pay $143.40 over and above your current P&I payment. Explain whether or not it would be reasonable to do this if you currently meet your monthly expenses with less than $100 left over. It is neither reasonable nor feasible to consider paying additional monies to pay off your mortgage before its maturity date if it will cost you more than an additional $100 per month and you have less than $100 per month in discretionary income. Identify the highest interest rate...
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...Financial Project Five years ago I bought a house for $171,000. I made a down payment of $35,000 therefore taking out a loan for $136,000. I am now five years into a 30 year loan that has a 5.6% fixed interest rate and would like to pay more. After receiving a bank statement I found I have a $121,259.44 balance left on my loan. I have been thinking about switching jobs or picking up a part time job since I am just making enough money to cover my expenses and I want to pay off my loan faster. I have also given thought to refinancing my house and whether it is worth it. Is paying a little extra monthly, therefore reducing my loan by five years (option 1), worth it? Should I refinance instead (option 2)? I did my research and what I found surprised me. Currently I have twenty five years left on my mortgage but I would like to pay it off in twenty. Since I am tight on money I had to find exactly how much extra money I would need to pay every month to shorten my loan to 240 payments or twenty years. If I pay an extra $90 a month towards my principle, I will shorten my loan to twenty years and save about $23,914 in interest. This is very reasonable because before I would have paid about $104,310 solely in interest over the remaining life of the loan. I believe it is a waste to pay so much of the loan directly towards interest, by paying an extra $90 per month I am able to drop this total interest to about $80,397. I can easily see myself working couple hours a week to pay this...
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...31 STEVE JOBS AND APPLE, INC. Todd A. Finkle, Gonzaga University Michael L. Mallin, The University of Toledo CASE DESCRIPTION The primary issues in this case involve business startup and management, and are appropriate for entrepreneurship and management courses. A secondary issue demonstrates how personal drive and motivation are critical components of successfully managing and growing a business, thereby making this case appropriate for discussion on the topic of strategic management. The case chronicles the life and passion of entrepreneur, Steve Jobs – illustrating the rise, fall, and current state of the Apple Computer Company. The case has a difficulty level 2 and is designed to be covered within one (75 minute) class period. The required preparation time is about 2 hours. It is appropriate for small business, entrepreneurship, or management classes. The purpose of this case is to illustrate to students how individual passion, determination, and innovation is a critical element in business start up success and also to stimulate critical thinking in terms of future direction for a company in a struggling economy. CASE SYNOPSIS The Apple Computer Company is arguably one of the most innovative technology companies to emerge in the last three decades. Apple, Inc. is responsible for bringing to market such products as the Macintosh computer and laptop, iPod and iTunes, and most recently, the iPhone. The success of the company can be traced primarily to a...
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...Financial Project Algebra with Applications – MAT 104 August 07, 2011 Currently you’ve meet your monthly expenses with nothing left over in order to pay the loan off in 20 years its best if you don’t refinance to reduce the cost per month. The method I used is to calculate the monthly payment if you start with the present loan balance, interest rate equals the number of payments. Then compare it with your recent payment; the difference will let you know if you can afford or it not. In order to refinance your loan, you’ll start it all over again then compare the results. The recommended course of action are as follows paying the current loan balance at the interest rate over 20 years there would be a difference left over. And it’s less reasonable to refinance if you’re paying more per month to reduce the cost. Paying for 25 years and if you choose to refinance the loan the more money you will have to pay each month. So the best option in this case is to go ahead and pay the loan within 20 years without financing. Paying additional to go ahead and pay the loan off quicker. The formula used was C = (P(r/12) / (1-(1+[r/12])^(-m). To avoid any incorrect calculations I referred to my financial calculator and performed a few steps and came up with the current loan balanced of 125,911.86 at 5.6% over 20 years, the payment would be 887.13 leaving a difference of 106.38. It would be unreasonable to refinance and pay an extra 106.38 per month to reduce...
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...------------------------------------------------- Financial Project Five years ago, I bought a house for $171,000, with a down payment of $30,000, which meant I took out a loan for $144,000. My interest rate was 5.75% fixed. I am now contemplating making a change to what I have already committed to. At present I see that there are two options that I can consider to make a change. The first would be to pay off the remaining principle in 20 years instead of 25 years. The second is to see if refinancing could be a consideration. Based off of my findings, I would choose one of the changes or just continue paying the loan as is. The first thing that I did was to check my bank statement and this is what I found: Escrow payment | $261.13 | Principle and Interest payment | $822.84 | Total payment | $1083.97 | Current Loan Balance | $130794.68 | Currently I am able to make my monthly payments as well as pay my other bills for my house. Although, I am left with a little less than a $100 to live off of each month, I would still like to see if it is possible for me to add to my monthly payments to pay off my house in 20 years. To solve my dilemma, I used the periodic payment method. I found out that I would have to add $95.45 to my monthly payment to pay off my loan in 20 years. I think that it would be unreasonable to try to pay off the loan in 20 years versus 25 years due to my current financial standing. To reach the add-on figure of $95.45, I used the periodic payment...
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...Assignment 2: Financial Project Coming up with a plan to eliminate five years off of a home loan, in my opinion, the first thing to do is verify where you are on the schedule, and change one variable to measure its effect. The variable to be changed would be reducing the remaining amount of time on your loan from 25 years to 20. Next I would gather all the specific information on my loan, then change the amount of time left on my loan and determine the monthly principal and interest payment. The loan was originally for $141,000. The interest rate was 5.75% fixed. The principal and interest payment is $822.84. After sixty payments the remaining principal balance is $130,794.68. The new mortgage payment for principal and interest to reduce the remaining years left on the loan from 25 years to 20 is $919.29. Next, add that to the $261.13 escrow for taxes and insurance, and then the total monthly payment is $1,180.42. This would be a monthly increase of $95.44. The formula I used is: PMT = (240, 5.75/12, 130.794.68) where 240 = the number of remaining monthly payments, 5.75/12= the monthly interest cost, and $130,794.68 is the current principal. This would leave less than $5.00 to manage its monthly spending. This would make paying off the mortgage five years faster a bad idea because of the normal everyday unexpected things that happen in life. In order to identify the highest interest rate you could refinance at in order to pay the current balance off in 20 years...
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...Background The following project uses the game of Guess Your Card. This is a game in which each player draws (without looking) three cards. Each card has a number between 1 and 9 on it. The players then place their cards on their heads so that everyone but themselves can see the cards. The object of the game is to guess what cards you have. The first person to do this correctly wins. During the play, each player, in turn, draws a question at random from a stack of questions. The player then answers the question based on the cards that they see (not their own cards, which they cannot see). An Example Andy has the cards 6, 6, & 7 Belle has the cards 3, 6, & 7 Carol has the cards 1, 1, & 9 Dan has the cards 3, 4, & 8 Andy draws the question card, “How many 7s do you see?” He answers, “one,” because he cannot see the 7 on his own head; he sees only the 7 on Belle's head. Next Belle draws the question card, “Of the four even numbers, how many different even numbers do you see?” She answers, “Three,” because she sees the 4, 6, and 8 on Andy and Dan's head. From this, Dan can conclude he has two even cards, since he can only see a 6 and Belle sees two more. Situation You are playing Guess Your Card with three other players. Here is what you see: Andy has the cards 1, 3, & 7 Belle has the cards 3, 4, & 7 Carol has the cards 4, 6, & 8 Andy draws the question card, “Do you see two or more players whose cards sum to the same value?” He answers, “Yes.” Next...
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...Current asset include inventory product you sell and accounts receivable are your credit accounts Converting balances to cash Inventory turnover ratios can tell you how fast or slow the inventory is selling. Accounts receivable ratios can tell you if your customers are paying you or not. You need more assets than liabilities on your balance sheet at all times. How much cash a business generates and how much cash from core operations. The company will struggle to succeed if it has less money. Finical ratios are tools used for internal and external evaluations of the business performance Its effectiveness in business management for both large and small businesses The value of financial ratios are means of comparing and predicting firm performance to investors efficiency and profitability of a firm In financial statement analysis the performance of the business is based on return of investment over time. When considering borrowing money to run a business careful planning is a must....
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...can afford or it not. In order to refinance your loan, you’ll start it all over again then compare the results. The recommended course of action are as follows paying the current loan balance at the interest rate over 20 years there would be a difference left over. And it’s less reasonable to refinance if you’re paying more per month to reduce the cost. Paying for 25 years and if you choose to refinance the loan the more money you will have to pay each month. So the best option in this case is to go ahead and pay the loan within 20 years without financing. Paying additional to go ahead and pay the loan off quicker. The formula used was C = (P(r/12) / (1-(1+[r/12])^(-m). To avoid any incorrect calculations I referred to my financial calculator and performed a few steps and came up with the current loan balanced of 125,911.86 at 5.6% over 20 years, the payment would be 887.13 leaving a difference of 106.38. It would be unreasonable to refinance and pay an extra 106.38 per month to reduce the cost per month. Making payments of 780.75 for 25 years, if loan was refinanced at 2,000.00 then the monthly payments per month would be 524.63 and 6, 295.59 per...
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...Introduction Financial analysis (also referred to as financial statement analysis or accounting analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is defined as “The process of evaluating businesses, projects, budgets and other finance-related entities to determine their suitability for investment.” Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In any organization, the two important financial statements are the Balance sheet & Profit and loss account of the business. Balance sheet is a statement of the financial position of an enterprise at a particular point of time. Profit and loss account shows the net profit or net loss of a company for a specified period of time. When these statements of the last few year of any organization are studied and analyzed, significant conclusions may be arrived regarding the changes in the financial position, the important policies followed and trends in profit and loss etc. Analysis of financial statement is necessary because it help in depicting the financial position on the basis of past and current records. Analysis of financial statement help in making the future decision and strategies. Therefore...
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...Financial Analysis Project-Final Paper Ladrica McRae MBA 503 February 28, 2016 Purpose of Analysis All managers and investors needs to know and understand how well they are performing in their industry against competitors and to make sure they are meeting goals that they set for themselves as a company. This will also help them understand their risk and profitability as a company. The food industry is very diverse in the United States and Internationally. Company Background and History Starbucks corporation, an American company founded in 1971 in Seattle, WA is a premier roaster marketer and retailer of specialty coffee around the world. Starbucks has about 182,000 employees across 19,767 company operated and licensed stores in 62 countries. Their product mix includes roasted and handcraft high quality premium priced coffees, teas, a variety of fresh food items and other beverages. They also sell a variety of natural food service accounts. Starbucks had a total revenue of $14.89 billion as of September 29th 2013. (Greedy) Starbucks receivables are mainly comprised of receivables for products and equipment sales and royalties from their licenses, as well as from receivables from CPG and foodservice business customers. Their allowances for doubtful accounts is calculated based on historical expense, customer credit risk and applications of specific identification method. As of September 28th 2014 and September 29th 2013, the allowance for doubtful account was $6.7...
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...Financial Management II PROJECT REPORT Submitted To: Submitted By: Prof. Chhavi Mehta Section B (Group No. – 9) Aashish Pant (15PGDM066) Akshita Jain(15PGDM070) Neelima Jain(15PGDM096) Nupur Goyal (15PGDM098) Siddharth Warrier (15PGDM119) Pharmaceuticals Industry in India: Overview: Indian pharmaceutical sector accounts for about 2.4 per cent of the global pharmaceutical industry in value terms and 10 per cent in volume terms and is expected to expand at a Compound Annual Growth Rate (CAGR) of 15.92 per cent to US$ 55 billion by 2020 from US$ 20 billion in 2015. With 71 per cent market share, generic drugs form the largest segment of the Indian pharmaceutical sector. By 2016, India is expected to be the third-largest global generic Active Pharmaceutical Ingredient (API) merchant market. The country accounts for the second largest number of Abbreviated New Drug Applications (ANDAs) and is the world’s leader in Drug Master Files (DMFs) applications with the US. Indian drugs are exported to more than 200 countries in the world, with the US as the key market. Generic drugs account for 20 per cent of global exports in terms of volume, making the country the largest provider of generic medicines globally and expected to expand even further in coming years. Pharmaceuticals Exports Promotion Council (Pharmexcil) expects pharmaceutical exports to reach US$ 25 billion in 2015. The Government...
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...There are significant differences between investing and trading. Investment considers longer holding periods whereas trading focus on only short-term holdings (Chong, 2012). An investment in Nordstrom is an investment in growth fund versus a value fund. Growth funds tend to experience faster than average growth in regards to earnings, revenues, or cash flow. The expectation is that growth funds have the potential for higher returns however these funds may also represent greater risk in comparison to value funds; these funds generally perform better when stock prices are rising and underperforming the market as stock prices fall. Investing in Nordstrom could require a higher tolerance for risk and an investment on time (“Growth Investing” 2015). For an investment in Nordstrom our investor falls into two profiles: growth profile and aggressive profile. The growth profile is fitting for an investor with patience seeking investments with an expectation that that investment will grow above the average rate in comparison to the industry or to the overall market. An emphasis is placed on equity investments primarily designed to attain growth over a long period of time. Less of an emphasis is placed on fixed income investments, cash and cash equivalents. These investors generally do not require cash from their own investment account but like their investment to grow faster in comparison to the inflation understanding that the investment value may vary occasionally and these investors...
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...Memorandum: of Fraud Examination TO: Mr. Robert Moritz, U.S. Chairman and Senior Partner, PwC FROM: Bilen Kebede, Lead Forensic Accountant DATE: MAY 31, 2015 SUBJECT: Icon Telecom Lifeline Fraud Lifeline Fraud Executive Summary Using the Lifeline fraud case as an example, this memo will analyze the case and prevent future fraud by similar telecommunication companies. Suggested recommendations include a proactive fraud auditing, a whistle-blowing system, and employee assistance programs (EAPs). Facts of The Case and Charges In 2014, both Icon Telecom and Wes Yui Chew, who was the sole owner of the company, were convicted of making false statements and money laundering for around $27 million from cell phone subscribers and the US government. Beginning in 2005, Lifeline provided subsidies to participating telephone companies not only for landline service, but also for wireless service for qualifying low-income customers (U.S. Attorney’s Office, 2015). Nonetheless, Icon took advantage of the subsidy program to be reimbursed for more than it merited. Icon Telecom provided Lifeline discounts to subscribers from July 2011 through September 2013. In this short period of time, the organization misappropriated a large amount of the funds available. At the start of the business, the company stated that they had 2,200 Lifeline subscribers. By the end of 2012, Icon was claiming more than 135,364 subscribers. This dramatic increase in the number of subscribers went...
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...HEAVEN’S CULTURE As Kingdom Citizens living on Earth, we have Dual Citizenship, or maybe something like an Earth Visa (green card). Scripture says our citizenship is (not will be) in Heaven, present tense, not futuristic! Two realms, coexisting concurrently, rather than sequentially. The predominant view of Earth now and Heaven later, has handicapped our understanding of the ways in which Heaven impacts Earth and us today. Thy Kingdom come, Thy will be done on Earth as it is in Heaven (Matthew 6:10). The realm of Heaven has a Culture, it own culture: language, currency, economy and politics. We need to become familiar with and embrace Heaven’s culture and allow it to influence and shape and help us to establish Heaven’s culture in the Earth. In the Culture of Heaven: * The small gift is made large * The weak are strong * The rejected are chosen * The cast down are lifted up * The broken are made whole * The last are first CHARACTERISTICS OF THE KINGDOM What are the predominant characteristics of God’s Kingdom that set it apart from all the other kingdoms of this world? God clearly shows us the primary characteristics of His Kingdom in His Word. 1) A LIVING KINGDOM – John 10:10b, Luke 17:21 2) A RIGHTEOUS KINGDOM – Romans 14:17, Romans 3:21-22, 1 John 3:7 3) A POWERFUL KINGDOM – Luke 10:1, 8-9, 1 Corinthians 2:4-5 4) A PRECIOUS AND VALUABLE KINGDOM – Matthew 13:44-46, Matthew 6:33 A KINGDOM JESUS WAS WILLING...
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