A-f-t-e-r- -g-r-a-d-u-a-t-i-n-g- -f-r-o-m- -c-o-l-l-e-g-e-,- -“-Y-O-U-”- -t-o-o-k- -a- -j-o-b- -a-s- -a- -c-o-n-s-u-m-e-r- -c-r-e-d-i-t- -a-n-a-l-y-s-t- -a-t- -a- -l-o-c-a-l- -b-a-n-k-.- -F-r-o-m- -y-o-u-r- -w-o-r-k-,- -r-e-v-i-e-w-i-n-g- -c-r-e-d-i-t- -a-p-p-l-i-c-a-t-i-o-n-s-,- -y-o-u- -r-e-a-l-i-z-e- -t-h-a-t- -y-o-u- -s-h-o-u-l-d- -b-e-g-i-n- -e-s-t-a-b-l-i-s-h-i-n-g- -y-o-u-r- -o-w-n- -c-r-e-d-i-t- -h-i-s-t-o-r-y-. D-e-s-c-r-i-b-e- -s-e-v-e-r-a-l- -s-t-e-p-s- -y-o-u- -c-o-u-l-d- -t-a-k-e- -t-o- -b-e-g-i-n- -b-u-i-l-d-i-n-g- -a- -s-t-r-o-n-g- -c-r-e-d-i-t- -r-e-c-o-r-d-. D-o-e-s- -t-h-e- -f-a-c-t- -t-h-a-t- -y-o-u- -t-o-o-k- -o-u-t- -a- -s-t-u-d-e-n-t- -l-o-a-n- -f-o-r- -y-o-u-r- -c-o-l-l-e-g-e- -e-d-u-c-a-t-i-o-n- -h-e-l-p- -o-r- -h-u-r-t- -y-o-u-r- -c-r-e-d-i-t- -r-e-c-o-r-d-?
A-f-t-e-r- -g-r-a-d-u-a-t-i-n-g- -f-r-o-m- -c-o-l-l-e-g-e-,- -“-Y-O-U-”- -t-o-o-k- -a- -j-o-b- -a-s- -a- -c-o-n-s-u-m-e-r- -c-r-e-d-i-t- -a-n-a-l-y-s-t- -a-t- -a- -l-o-c-a-l- -b-a-n-k-.- -F-r-o-m- -y-o-u-r- -w-o-r-k-,- -r-e-v-i-e-w-i-n-g- -c-r-e-d-i-t- -a-p-p-l-i-c-a-t-i-o-n-s-,- -y-o-u- -r-e-a-l-i-z-e- -t-h-a-t- -y-o-u- -s-h-o-u-l-d- -b-e-g-i-n- -e-s-t-a-b-l-i-s-h-i-n-g- -y-o-u-r- -o-w-n- -c-r-e-d-i-t- -h-i-s-t-o-r-y-. D-e-s-c-r-i-b-e- -s-e-v-e-r-a-l- -s-t-e-p-s- -y-o-u- -c-o-u-l-d- -t-a-k-e- -t-o- -b-e-g-i-n- -b-u-i-l-d-i-n-g- -a- -s-t-r-o-n-g- -c-r-e-d-i-t- -r-e-c-o-r-d-. D-o-e-s- -t-h-e- -f-a-c-t- -t-h-a-t- -y-o-u- -t-o-o-k- -o-u-t- -a- -s-t-u-d-e-n-t- -l-o-a-n- -f-o-r- -y-o-u-r- -c-o-l-l-e-g-e- -e-d-u-c-a-t-i-o-n- -h-e-l-p- -o-r- -h-u-r-t- -y-o-u-r- -c-r-e-d-i-t- -r-e-c-o-r-d-?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
A-f-t-e-r- -g-r-a-d-u-a-t-i-n-g- -f-r-o-m- -c-o-l-l-e-g-e-,- -“-Y-O-U-”- -t-o-o-k- -a- -j-o-b- -a-s- -a- -c-o-n-s-u-m-e-r- -c-r-e-d-i-t- -a-n-a-l-y-s-t- -a-t- -a- -l-o-c-a-l- -b-a-n-k-.- -F-r-o-m- -y-o-u-r- -w-o-r-k-,- -r-e-v-i-e-w-i-n-g- -c-r-e-d-i-t- -a-p-p-l-i-c-a-t-i-o-n-s-,- -y-o-u- -r-e-a-l-i-z-e- -t-h-a-t- -y-o-u- -s-h-o-u-l-d- -b-e-g-i-n- -e-s-t-a-b-l-i-s-h-i-n-g- -y-o-u-r- -o-w-n- -c-r-e-d-i-t- -h-i-s-t-o-r-y-.
D-e-s-c-r-i-b-e- -s-e-v-e-r-a-l- -s-t-e-p-s- -y-o-u- -c-o-u-l-d- -t-a-k-e- -t-o- -b-e-g-i-n- -b-u-i-l-d-i-n-g- -a- -s-t-r-o-n-g- -c-r-e-d-i-t- -r-e-c-o-r-d-.
D-o-e-s- -t-h-e- -f-a-c-t- -t-h-a-t- -y-o-u- -t-o-o-k- -o-u-t- -a- -s-t-u-d-e-n-t- -l-o-a-n- -f-o-r- -y-o-u-r- -c-o-l-l-e-g-e- -e-d-u-c-a-t-i-o-n- -h-e-l-p- -o-r- -h-u-r-t- -y-o-u-r- -c-r-e-d-i-t- -r-e-c-o-r-d-?
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- A-l- -a-n-d- -A-r-c-e-e- -S-a-d-i-c-o-n- -h-a-v-e- -a- -h-o-m-e- -w-i-t-h- -a-n- -a-p-p-r-a-i-s-e-d- -v-a-l-u-e- -o-f P9,000,000 a-n-d- -a- -m-o-r-t-g-a-g-e- -b-a-l-a-n-c-e- -o--f- -on-l-y P4,500,000 G-i-v-e-n- -t-h-a-t--,- a-n- -S-&-L- -i-s- -w-i-l-l-i-n-g- -t-o- -l-e-n-d- -m-o-n-e-y- -a-t- -a- -l-o-a-n---t-o---v--al-u-e- -r-a-t-i-o- -o-f 75%, h-o-w- -b-i-g- -a- -h-o-m-e- -e-q-u-i-t-y- -c-r-e-d-i-t- -l-i-n-e- -c-a-n- -A-l- -a-n-d- -A-r-c-e-e- -o-b-t-a-i-n-?- -H-o-w- -m-u-c-h-,- -i-f- -a-n-y-,- -o-f- -t-h-i-s- -l-i-n-e- -w-o-u-l-d- -q-u-a-l-i-f-y- -a-s- -t-a-x---d-e-d-u-c-t-i-b-l-e- -i-n-t-e-r-e-s-t- -i-f- -t-h-e-i-r- -h-o-u-s-e- -o-r-i-g-i-n-a-l-l-y- -c-o-s-t P5,000,000?
- A-n-n-a- -M-a-r-i-e- -R-o-m--a-n- -r-e-c-e-n-t-l-y- -g-r-a-d-u-a-t-e-d- -f-r-o-m- -c-o-l-l-e-g-e- -a-n-d- -i-s- -e-v-a-l-u-a-t-i-n-g-- t-w-o- -c-r-e-d-i-t- -c-a-r-d-s-.- -C-a-r-d- -A- -h-a-s- -a-n-n-u-a-l- -f-e-e- -o-f P7,500 a-n-d- -a-n- -i-n-t-e-r-e-s-t- -r-a-t-e- -o-f 9%. C-a-r-d- -B- -h-a-s- -n-o- -a-n-n-u-a-l- -f-e-e- -a-n-d- -a-n- -i-n-t-e-r-e-s-t- -r-a-t-e- -o-f 16%. A-s-s-u-m-i-n-g- -t-h-a-t- -A-n-n-a- -M-a-r-i-e- -i-n-t-e-n-d-s- -t-o- -c-a-r-r-y- -n-o- -b-a-l-a-n-c-e- -a-n-d- -p-a-y- -o-f-f- -h-e-r- -c-h-a-r-g-e-s- -i-n- -f-u-l-l- -e-a-c-h- -m-o-n-t-h-,- -w-h-i-c-h- -c-a-r-d- -r-e-p-r-e-s-e-n-t-s- -t-h-e -b-e-t-t-e-r- -d-e-a-l-?- -I-f- -A-n-n-a- -M-a-r-i-e- e-x-p-e-c-t-e-d- -t-o- -c-a-r-r-y- -a- -s-i-g-n-i-f-i-c-a-n-t- -b-a-l-a-n-c-e- -f-r-o-m- -o-n-e- -m-o-n-t-h- -t-o- -t-h-e- -n-e-xt-,- -w-h-i-c-h- -c-ar-d- -w-o-u-l-d- -b-e- -b-e-t-t-e-r-?- -E-x-p-l-a-i-n-
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