Mr. Shaban has just started working in OmanTel. As he receives salary every month he want to invest his money in some liquid financial instrument. You are required to suggest Mr. Shaban with them most suitable investment from the following investment:
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- Annabelle, a busy professional, is seeking a way to invest a fixed amount of her monthly salary into an actively-managed investment fund. She has indicated she has a surplus $500 per month to invest. Which investor service would be suitable for her? A.Automatic investment plan of $500 per month B.Automatic withdrawal plan of $500 per month C.$500 conversion privilege D.Regular withdrawal plan of $500 per monthAn engineer intends to travel abroad to take a postgraduate course at a maternity hospital. He estimates that he needs $5,000 to establish himself and another $3,000 monthly for two years to complete the course. What value would he need to have today to make his plans viable, considering that he could apply the money at a rate of 6.0% per year?a) As an investment advisor, you have been approached by a client called Mr. Sobolo, who wants some help in investment-related matters.Mr. Sobolo is currently 45 years old and has Gh₵600,000 in the bank. He plans to work for 15 more years and retire at the age of 60. Mr. Sobolo's present salary is Gh₵ 400,000 per year. He expects his salary to increase at the rate of 12 per cent per year until his retirement.Mr. Sobolo has decided to invest his bank balance and future savings in a portfolio in which stocks and bonds would be equally weighted. For the sake of simplicity, assume that these proportions will be maintained by him throughout. He also believes that bonds would provide a return of 7 per cent and stocks a return of 13 per cent. You concur with his assessment.Once Mr. Sobolo retires at the age of 60 he would like to withdraw Gh₵500,000 per year from his investments for the following 15 years as he expects to live up to the age of 75 years. He also wants to bequeath Gh₵ 1,000,000…
- Kiki bought a computer for Rp. 8,000,000, -. If he bought itWith credit, he must prepare advance money and be able to pay the rest byInstallments every month for 9 months with 24% interest. If he wants biginstallments per month are exactly Rp. 800,000, - according to his income, how much advance money that he must prepare.As an investment advisor, you have been approached by a client called Ramesh, who wants some help in investment related matters. Ramesh is currently 45 years old and has Rs 600,000 in the bank. He plans to work for 15 more years and retire at the age of 60. Ramesh's present salary is Rs 400,000 per year. He expects his salary to increase at the rate of 12 percent per year until his retirement. Ramesh has decided to invest his bank balance and future savings in a portfolio in which stocks and bonds would be equally weighted. For the sake of simplicity, assume that these proportions will be maintained by him throughout. He also believes that bonds would provide a return of 7 percent and stocks a return of 13 percent. You concur with his assessment. Once Ramesh retires at the age of 60 he would like to withdraw Rs 500,000 per year from his investments for the following 15 years as he expects to live upto the age of 75 years. He also wants to bequeath Rs 1,000,000 to his children…Ahmed is a young BBA Graduate from MEDIU and has just started working as an administrative executive with a manufacturing company with a monthly salary of RM4,800 a month. Ahmed is renting a room near his workplace for RM500 per month and travels to his workplace with a motorcycle. He plans to get married in 3 years and to buy a small car by the end of 2025. Ahmed needs to raise funds of at least RM150,000 by end of 2025 in order to meets his plan. You are required to advise Ahmed on how he could raise the money he needs through the various sources of Fund In-Flows
- You have just been employed as an investment analyst in an investment bank. You took over from someone who left with a number of issues that need answers. The issues are itemized below: a) A client just deposited ¢7,000,000 in one of your investment funds which is currently earning 10% return. The bank has advised the client to deposit an additional ¢4,000,000 at the end of each of the next three years. The client would like to know how much the total amount in this investment will be in three years’ time. b) A client has been offered an investment product which requires that he pays ¢200,000 in one year, ¢400,000 the next year, ¢600,000 the year after, and ¢800,000 at the end of the following year. The client could have earned 12% on similar investments being offered on the market but has decided to take your firm’s offer. How much is this investment worth today assuming the client proceeds to invest? c) Kassim has just been offered a job at ¢600,000 a year. He anticipates his salary…You have just been employed as an investment analyst in an investment bank. You took over from someone who left with a number of issues that need answers. The issues are itemized below: a) A client just deposited ¢7,000,000 in one of your investment funds which is currently earning 10% return. The bank has advised the client to deposit an additional ¢4,000,000 at the end of each of the next three years. The client would like to know how much the total amount in this investment will be in three years’ time. b) A client has been offered an investment product which requires that he pays ¢200,000 in one year, ¢400,000 the next year, ¢600,000 the year after, and ¢800,000 at the end of the following year. The client could have earned 12% on similar investments being offered on the market but has decided to take your firm’s offer. How much is this investment worth today assuming the client proceeds to invest? c) Kassim has just been offered a job at ¢600,000 a year. He anticipates his salary…Mr John who is 30-year old which is one of your client. He recently received £30,000 from his family and wants to invest this fund for at least 25 years. He has a job with saving of £800 per month. He comes to you as his financial advisor seeking for investment advice. Suggest a list of potential investments opportunities for Mr. John. Keeping in view of his age and financial condition, what is your financial advice? Hint: consider different investment options in money and capital market.
- Suppose that your colleague has approached you with an opportunity to lend $25,000 to her laundry business in Accra. The business, called Do it yourself launderette, plans to offer home services to customers at area. Funds would be used to lease a delivery vehicle, purchase supplies, and provide working capital. Terms of the proposal are that you would receive $5,000 at the end of each year in interest with the full $25,000 to be repaid at the end of a ten year period Assuming a 10% required rate of return, calculate the present value of cash flows and the net present value of the proposed investment Based on this same interest rate assumption, calculate the cumulative cash flow of the proposed investment for each period in both nominal and present value terms?PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS2.Alejandra Marrufo wants to know how much she should deposit today, so that in 10 years she will have the amount (VF) of 77,150.00, which she needs to make a pension payment for her domestic worker, a) if the account pays 8.125% interest compoundable semiannually; b) if the account pays 9.65% compoundable monthlConsider the following scenario in relation to your Notary, Loan Signing Agent and Marriage officiant practice in Hawaii and determine the opportunity cost of leaving your job to become an entrepreneur. You currently make $90,000 per year at your job plus benefits (equal to 30% of your salary). On January 1 of the New Year, you start your own business. After the first year, your accountant informs you that you made $45,000 and out of that you paid $6,000 for health insurance. What was your opportunity cost? If your opportunity cost is higher than you would like, how can you lower your opportunity cost in the future years?