2301_LG1-2 Project (1) (1)
xlsx
keyboard_arrow_up
School
Texas Tech University *
*We aren’t endorsed by this school
Course
3321
Subject
Finance
Date
Feb 20, 2024
Type
xlsx
Pages
3
Uploaded by CoachSparrowMaster905
PFI 2301: Personal Financial Literacy
LG1 & 2 Project
LG1-Q1
LG2-Q2
Life Goal
To live life to the fullest.
S
Be able to have time to spend time with my family and do things I could not as a child M
In a span of over ten years I hope to start my path to having more time for life itself.
A
To attain a family R
Having Kids to spend time with and teach to be better people
T
Needing to get a wife and start working in my career.
Financial Goal
To become financially free
S
To create passive income
M
To have enough passive income to not have to work anymore
A
through real estate I would obtain houses and live off of their rent.
R
Realestate is my career that I wish to pursue in the future.
T
Takes time to build a portfolio and to have enough money to invest in properties.
Focus on YOU! 1) Define financial literacy and 2) how does financial literacy relate to the life cycle stage you're currently in. (type responses, no calculations needed)
Financial literacy is being able to understand how to calculate, undertsand and work with money to make better financial decisions.
Financial literacy relates to my life cycle in now starting to be my own person, make my own money and spend my own money even though it isnt much compared to adults. Being able to understand it will help me be able to grow my money and make better decisions with my money.
Focus on YOU! Create one life and one financial goal using the SMART goal process. State each goal below, then make the goal SMART! (type responses, no calculations needed)
LG2-Q3
NPER
PMT
PV
FV
From the scenario type out the TVM inputs in the cells.
FV
PV
12
3.500
#N/A
LG2-Q4
NPER
PMT
PV
FV
From the scenario type out the TVM inputs in the cells.
RATE
PV
12
#N/A
LG2-Q5
NPER
PMT
PV
FV
From the scenario type out the TVM inputs in the cells.
FV
NPER
1
#N/A
LG2-Q6
NPER
PMT
PV
FV
From the scenario type out the TVM inputs in the cells.
RATE
PV
1
#N/A
LG2-Q7
NPER
PMT
PV
FV
From the scenario type out the TVM inputs in the cells.
FV
PMT
12
#N/A
Note: RATE = % / Compounding #
Note: NPER * Compounding #
LG2-Q8
NPER
PMT
PV
FV
ANSWER What would the quarterly interest rate be needed to reach this goal?
52
#N/A
LG2-Q9
NPER
PMT
PV
FV
ANSWER What would be the monthly payment to reach this goal?
#N/A
LG2-Q10
NPER
PMT
PV
FV
ANSWER How many months will it take to complete this goal?
#N/A
LG2-Q11
NPER
PMT
PV
FV
ANSWER How much must be deposited today in the account to reach this goal?
#N/A
LG2-Q12
NPER
PMT
PV
FV
ANSWER What is the potential balance of this account in 20 years?
Application Time! Facts about Jessica - Complete the following TVM questions (Q3-
Q7). Here you will be provided with additional guidance, use the dropdown boxes for 'a-c' to help calculate the TVM problem. Hint: A negative sign can also result in what you're solving for
Hint: 1= Annually, 2= Semi-
Annually, 4= Qtr., 12= Monthly, 52= Weekly, 365=Daily
Note: RATE = % / Compounding #
Note: NPER * Compounding #
Jessica was thinking of making an investment for $6000. She expects it to increase in value at a rate of 3.5% compounded annually for the next five years. How much will the investment be worth at the end of the fifth year?
a) Solving For?
(select from dropdown)
b) Which input is negative? (type TVM input(s) below)
c) Compounding Number (select from dropdown)
RATE
In college, Jessica borrowed $3200 from her father to study abroad. She paid back $4000 to her father at the end of 4 years. What was the average annual compound rate of interest on the loan from her father?
a) Solving For?
(select from dropdown)
b) Which input is negative? (type TVM input(s) below)
c) Compounding Number (select from dropdown)
RATE
Jessica would like to open a savings account. How many years will it take $2500 to grow to $4500 with an interest rate of 3.0%?
a) Solving For?
(select from dropdown)
b) Which input is negative? (type TVM input(s) below)
c) Compounding Number (select from dropdown)
RATE
Jessica's grandparents opened a savings account when she was born and could access the funds when she turned 18. The account is currently at $16000 and grew at a rate of 2%. What was the initial amount invested?
a) Solving For?
(select from dropdown)
b) Which input is negative? (type TVM input(s) below)
c) Compounding Number (select from dropdown)
RATE
Jessica would like to go on a cruise in one year. The total trip costs $1500. She is thinking of placing the funds in an account that earns a little interest - she found an account with .5% interest. To reach this goal, how much would Jessica need to contribute to this account monthly?
a) Solving For?
(select from dropdown)
b) Which input is negative? (type TVM input(s) below)
c) Compounding Number (select from dropdown)
RATE
Application Time! 1) You will type the TVM inputs in the table provided from the "Info Sheet". 2) Mirror the inputs from the "Info Sheet" to the TVM cells provided. 3) Within the TVM cells, if needed, compound. 4) In the "ANSWER" cell show us your TVM calculation.
Goal 1: Opened an account with $1500, with the hope to have a total of $2500 saved in an emergency fund within one year (no additional payments). Compounding Number (select from dropdown)
RATE
Goal 2: A credit card balance of $2000 with an 15% rate. The goal is to pay off the credit card by the end of the year. (future is a $0 balance)
Compounding Number (select from dropdown)
RATE
Goal 3: Student loan balance of $18,000 at 6.5% and making $425 monthly payments. (future is a $0 balance)
Compounding Number (select from dropdown)
RATE
Goal 4: Save $15000 in an account with 15% for a down payment on a home in 6 years. (no additional payments)
Compounding Number (select from dropdown)
RATE
Goal 5: Open a Roth IRA at 5% for 20 years and contribute $1500 on a semi-
annual basis. Compounding Number (select from dropdown)
RATE
PFI 2301: Personal Financial Literacy
Information Sheet
Unit 1: BASICS - The Tools and the Rules of Personal Finance
LG1-Understand financial literacy and how it relates to the financial planning process over the life cycle.
LG2-Understand opportunity cost and the time value of money calculations in relation to financial goals.
Short-Term
RATE
NPER
PMT
PV
FV
RATE
NPER
PMT
PV
FV
Intermediate-Term
RATE
NPER
PMT
PV
FV
RATE
NPER
PMT
PV
FV
Long-Term
RATE
NPER
PMT
PV
FV
Project Overview: Throughout the semester, you will be working on an application based scenario on how to apply the course learning goals. All projects will be submitted through Excel. The "Info Sheet" (where you're now) will be the landing page for all of the information to complete each Learning Goal Project. Make sure to keep up with the schedule for the due dates and review the rubrics to make sure you know how each Project will be graded. Let's get started! Your Role:
Fast forward, and you have recently graduated from college, and you remember taking PFI 2301 and are super excited to be financially literate as you enter your first career-
related job. However, your friend did not take PFI 2301 and is trying to figure what to do with their finances. They have contacted you for some guidance. Being the awesome friend you are, you agree to walk them through the four personal finance elements (Basics, Borrowing, Building, & Protecting) you learned in class!
Scenario: Get started reviewing the information under "Unit 1: Basics" to learn more about your friend, Jessica's financial situation.
FINANCIAL GOALS (Q8-Q12) -
Based on the scenario, type the TVM inputs in the table to figure out what you are solving for (no additional compounding steps here). Goal 1:
Opened an account with $1500, with the hope to have a total of $2500 saved in an emergency fund within one year (no additional payments). Goal 2:
A credit card balance of $2000 with an 15% rate. The goal is to pay off the credit card by the end of the year. (future is a $0 balance)
Goal 3: Student loan balance of $18,000 at 6.5% and making $425 monthly payments. (future is a $0 balance)
Goal 4: Save $15000 in an account with 15% interest for a down payment on a home in 6 years. (no additional payments)
Goal 5: Open a Roth IRA at 5% for 20 years and contribute $1500 on a semi-annual basis.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
solve this practice problem
arrow_forward
Solve this practice problem
arrow_forward
please solve this preactice problem
arrow_forward
Need both questions. ....attempt if you will solve both questions. ...thanks
please provide excel functions as well rhank you
arrow_forward
5 dont have to include timeline
arrow_forward
Please help with practice problem
arrow_forward
5 you dont need to include timeline
arrow_forward
Please answer question 10 in derail showing computation after reading the scenario thank you. Question at the endStephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.…
arrow_forward
Please answer question 4 & 5 after reading the scenario thank you. Question at the end
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum.
She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…
arrow_forward
Hi good morning the previous questions have been completed by you all.
Please answer question 6 & 7 after reading the scenario thank you. Question at the end
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum.
She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes…
arrow_forward
Please answer question 8 after reading the scenario thank you. Question at the endStephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie's research has…
arrow_forward
Please answer question 2 & 3 after reading the scenario thank you. Question at the end
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum.
She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…
arrow_forward
Unit Activity: Mathematical Models and Investments
o three.complete sentences. Each questions work four points
10 of 11 E
Part A
Tiffany is 45 and has three children in elementary school and college. She has been contributing to
Social Security for over 20 years. List and describe three ways in which Tiffany and her family could get
benefits from Social Security. Make sure that the three situations are completely different.
BI U X²
図 √ 田く
X₂
15px
V
Space used (includes formatting): 0/ 15000
Part B
Which investment would earn the most money by retirement at age 65?
1. investing $5,000 in stocks at 6% return at age 25
2. investing $10,000 in bonds at 3% interest at age 35
3. investing $10,000 in stocks at 8% return at age 45
Explain the reasoning behind your answer.
15px
E
Apr 17
E
1:579
arrow_forward
Q12 Today Dante and Sharon had their first child. All of the grandparents gave them money to help out, which added up to $23,000, and they are going to put this money into an education fund for their child’s future. They are nervous about the stock market so they’ve decided to put their money in a GIC which earns an interest rate of 2.6%, compounded monthly.
How much money will they have in the account by their child’s 18th birthday?
How much interest will be earned?
arrow_forward
ok
t
nces
Your friend Amber has approached you seeking advice concerning two investment opportunities that she is presently
considering. Her classmate Simone has asked her for a loan of $500 to help establish a small business; her neighbor Riley would
like to borrow $515 as a personal loan. One year from now, Amber's original investment will be returned in either case, along with
$45 of income from Simone or $48 of income from Riley. Amber can make only one investment.
Required:
a. 1. Compute the ROI of Simone and Riley.
2. Which investment would you advise Amber to make?
b. What other factors should you advise Amber to consider before making either investment?
Complete this question by entering your answers in the tabs below.
Req A1
Req A2 and B
Compute the ROI of Simone and Riley.
Note: Round your answers to 2 decimal places.
Simone
Riley
ROI
%
%
Show less A
arrow_forward
Questions
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
◄ Question 9 of 25
Michael and Chloe are saving for their daughter Laylah's college education. Laylah just turned 10 (at t = 0), and she will be
entering college 8 years from now (at t = 8). College tuition and expenses at State U. are currently $15,500 a year, but they are
expected to increase at a rate of 3.5% a year. Laylah should graduate in 4 years--if she takes longer or wants to go to graduate
school, she will be on her own. Tuition and other costs will be due at the beginning of each school year (at t = 8, 9, 10, and 11).
So far, Michael and Chloe have accumulated $12,000 in their college savings account (at t = 0). Their long-run financial plan is
to add an additional $4,000 in each of the next 4 years (at t = 1, 2, 3, and 4). Then they plan to make 3 equal annual
contributions in each of the following years, t = 5, 6, and 7. They expect their investment account to earn 8%. How large must
the annual payments at t =…
arrow_forward
Plan to Save
You will need to spend money to achieve most of the long-term goals you set in your life. It could be money to pay for your education, buy a house,
raise a family, travel, start a business, and so on. Because you need money to achieve your most valued long-term goals, you also need to create a
savings plan as a part of your overall financial plan. Saving is not something that just happens for most people. It is the result of careful planning and
controlled spending. Consider Walter, who would like to save $300 per month toward the purchase of a home. Walter's income and spending in the
past month are shown below. Use this information to answer the questions that follow.
Walter's Income
Income
Spending
Net (after tax) Wages
$2,850.00 Rent/Utilities
S751.76
Interest Earned
$64.07
Food
$348.32
$120.00
Clothing
Transportation $499.61
Loan Payments $299.00
Entertainment $454.92
Stock Dividends
$239.42
Insurance
$231.42
Other
$273.45
1. How much was Walter's income?
2. How much…
arrow_forward
CH9HW i Help Save & Exit Submit a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $140,000 in a savings account on January 1 of this year. The savings account will earn 8 percent annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). b. At the end of each year, a different friend, Claire, plans to deposit $10,400 in a savings account. The account will earn 11 percent annual interest, which will be added to the fund balance at year-end. Claire will make her first deposit at the end of this year. (FV of $1, PV of $1, FVA of
arrow_forward
Heer
Don't upload any image please
arrow_forward
if you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertiseif you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertise
arrow_forward
Vinay
arrow_forward
hj
arrow_forward
Kindly help me with this financial accounting questions not use chart gpt please fast given solution
arrow_forward
Aa.6
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you

PFIN (with PFIN Online, 1 term (6 months) Printed...
Finance
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning

Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning
Related Questions
- 5 you dont need to include timelinearrow_forwardPlease answer question 10 in derail showing computation after reading the scenario thank you. Question at the endStephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.…arrow_forwardPlease answer question 4 & 5 after reading the scenario thank you. Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…arrow_forward
- Hi good morning the previous questions have been completed by you all. Please answer question 6 & 7 after reading the scenario thank you. Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes…arrow_forwardPlease answer question 8 after reading the scenario thank you. Question at the endStephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie's research has…arrow_forwardPlease answer question 2 & 3 after reading the scenario thank you. Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- PFIN (with PFIN Online, 1 term (6 months) Printed...FinanceISBN:9781337117005Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage LearningPfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning

PFIN (with PFIN Online, 1 term (6 months) Printed...
Finance
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning

Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning