Financial Planner

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Essay Week 1 1. David should pay $2,065.27 for this investment at 10%. $200 x 1/1.10= 200/1.10= 181.82 $300 x 1/1.10^2=300/1.21=247.93 $400 x 1/1.10^3=400/1.331=300.53 $500 x 1/1.10^4=500/1.4641=341.51 $1,600 x 1/1.10^5=1,600/1.6105=993.48 $2,065.27 David should pay $2,473.10 for this investment at 5% $200 x 1/1.05=200/1.05=190.48 $300 x 1/1.05^2=300/1.1025=272.11 $400 x1/1.05^3=400/1.1576=345.54 $500 x 1/1.05^4=500/1.2155=411.35 $1,600 x 1/1.05^5=1,600/1.2763=1253.62 $2,473.10 2. Gathering information in different types of planning in a comprehensive financial plan you will need the following:…show more content…
What is the total amount you are willing to pay for each person? 3. Similarities and Differences between household and business financial process. -Income in both process are both similar, because they both have investment returns. In the household income are the revenues from working, whereas in business is revenue from output of goods and services. -Expenses in household are nondiscretionary and in business they are fixed and variable cost. -Cash flow after maintenance expense is the similar with cash flow from operations in a business, because they are both profits. The difference is that cash flow after maintenance expenses are used by a household currently or in the future, but in a business “Operating cash flow is important because it indicates whether a company is able to generate sufficient positive cash flow to maintain and grow its operations, or whether it may require external financing.” (Investopedia) -Additions to investments in a household are savings reserved for the future to use and in a business it is reinvested earnings to help generate future dividends. They are similar, because it is money to be used in the future. -Leisure outlays is money to be used now for anyone in the household to use how they want to and dividends are cash to be distributed to shareholders. They are similar, because it is money to be distributed for someone to use how they please. Reference: Operating Cash Flow (OCF) Definition |
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