Difference between effective rate and stated rate

Assignment Help Finance Basics
Reference no: EM131442448

Each response should be a paragraph or two and should include a concept definition, where, why, how they are important or used in managing a business.

1. Explain what calculating the time value of money does.

2. What is the difference between effective rate and stated rate?

3. Explain the relationship between inflation and the time value of money.

4. Give two examples of using annuities.

5. Other than the obvious (that one is a payment you make and one is your savings amount) explain the differences in how a mortgage is calculated vs. how the monthly amount you want to save for retirement is calculated.

6. What impact does time period have on an annuity?

7. What are the things that can be done to increase a FICO score.

8. Why is it important to consider the cost of long term capital expenditures when they reside on the balance sheet?

9. Describe the steps in creating a capital budget.

10. Explain the various situations where each one of the six techniques for capital budgeting would be the best one to utilize. (Note you need to come up with a situation for each one of the six techniques).

11. What can you do to manage risk?

12. What is a financial plan?

13. Discuss the factors that can have a negative effect on a retirement plan.

14. Can these factors be managed?

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