Personal Finance Assignment Example | Topics and Well Written Essays - 1500 words

Personal Finance - Assignment ExampleFor example, if demand for properties has gone up lately, hence mortgage rates will increase then. With the fixed rate deal, she could avoid such(prenominal) a risk. However, if she plans to repay the borrowed money faster than 2 years, which office short term financing hence other financing opportunities may involve lower costs. Such as taking bank overdrafts (i.e. 5.90% at confederation & Leicester Premier Direct1)or trade credits trade credits is an available option if she borrows between 30 to 90 days and its profitable for Jane since it does not take on any gratify charges. However, she must have a good credit record. Additionally, since the globalisation, deregulation of financial markets as well as technological advancements, guests around the military man have now easier access to obtain finance around the world which offers Jane an opportunity to choose the lowest rate possible.A good credit explanation enables Jane to reach a lar ger amount of financing opportunities. As illustrated above, trade credit does not involve any interest rates however the customer should keep a good credit record. To ensure a good credit history, Jane should control her payments such as ensuring that debts are paid by their collect date, etc.Jane should gain information of the level of control of the lender. ... Both Annie and Gareth acquire a 10,000 lump sum. If they each put the 10,000 into a savings account give 6% AER gross for one year, how much net interest would each of them receive after one year (50 words))6% of exhaust Sterling 10,000= Pound Sterling 600Tax is 20% on interest payableSo, Pound Sterling 600-20%(Pound Sterling 120) = Pound Sterling 480Hence, the net interest rate is 4.8%.If the largeness rate had been 3.5% over the year, what would be the real value of both Annies and Gareths total savings after one year (60 words)Real value equals to nominal interest rates minus inflation rate4.8% - 3.5= 1.3%10,000+1.3 %= 10,13010,130 x 2= 20,260 (both Annie and Gareth)Annie is considering using her 10,000 to purchase shares in a large blue-chip company instead, with the idea that she would cheat on the shares after one year in order to purchase a car. Briefly outline the key factors that Annie should think about before making such an equity based investment.She should research about the company first. The risk involved of investing there, such as examining the companys financial performance, such as its balance sheet, funds flow, revenue statement, etc. How long the company has been established, is there any negative publicity, etc. These points assist Jane to avoid the risk of loosing her funds. She should also identify other opportunities, such as other companies which would be more profitable to invest in, such as established companies i.e. Apple, Sony, etc. Additionally, she could also use her 10,000 to establish her own micro business or join a partnership, etc depending which one is more profitable and involves less risk.Moreover, she should also consider the flexibility of the company. Some companies require investors