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- Geoff recently graduated from a state university with a degree in art history. He has no student loans and has saved $7,000 toward retirement while in school. He's heard rumors about the stock market being unstable right now, and he has friends his age who have seen their investment accounts go down in value. Geoff has decided to keep his money in a savings account until mutual fund returns look better; then he will invest the money. 1 2 3 4 Did Geoff make a good decision to keep his money in a savings account until the market goes back up? Why or why not? If he did put his money in the stock market instead of a savings account, should he leave it alone or take it out when the market goes down? Explain your answer. For long-term savings, what is the better option: Keep your money in a savings account or invest it into the stock market? Why? If Geoff came to you for advice about his money situation, what would you tell him?Kyle is a grade 5 student currently taking his modular class at home since the pandemic happened in the last month of the first quarter of that year 2020 here in the Philippines. His Mom Lea tried to invest in Kyle’s future for college which saves money of 500PhP twice a month which started at the beginning of the second quarter. What will be the accumulated value after he finished his Senior High School level assuming that the last contribution and his graduation will be held at the end of the second quarter with the equivalent of 8% cost of money compounded on the stated period of contribution?Requirements: Cash Flow diagram, Formula and solutionsAfter having not gone anywhere over the past few years due to COVID, you would like to begin planning your next family vacation. You plan on taking your family to the Walt Disney World for a magical vacation in two years. Your hope is that, by then, COVID-related restrictions will have been eased. You are also hoping that the new Guardians of the Galaxy attraction will be completed by then. Starting today, you will begin making quarterly deposits of $600 into a savings account that pays interest quarterly (every 3 months). The annual interest rate earned in this account is 4% APR (1.00% quarterly), If you make your first deposit today and continue making quarterly deposits into the account for the next two years, how much money will you have saved for your vacation after you make your final payment at the end of the second year (9 total deposits)? The amount of money saved in the account at the end of the 2nd year is closest to which of the following? O A. $5,092 O B. $4,591 O C.…
- Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. Suppose you expect a significant career or family change in three years, which requires substantial initial capital commitment (e.g., starting your own business, relocating abroad, buying a house, children going to college, etc.). Which of the following seems to be the most appropriate investment strategy? a.Take a loan to buy an investment condo. b.Use your savings to buy a small number of stocks that you believe to rise in price. c.Use your savings to buy well-diversified stock mutual fund shares. d.Use your savings to buy well-diversified bond mutual fund shares.Kyle is a grade 5 student currently taking his modular class at home since the pandemic happened in the last month of the first quarter of that year 2020 here in the Philippines. His Mom Lea tried to invest in Kyle’s future for college which saves money of 500PhP twice a month which started at the beginning of the second quarter. What will be the accumulated value after he finished his Senior High School level assuming that the last contribution and his graduation will be held at the end of the second quarter with the equivalent of 8% cost of money compounded on the stated period of contribution?PLEASE PROVIDE A CLEAR SOLUTION THANK YOUCharlotte has just finished her MBA and started a career in banking investment, she wanted to have a new car as soon as possible. The price of the car is $ 28,320. She must also have clothes and coats for the job which costs $ 3,248. The salary for his job this year is $ 42,000 and next year it will be increasing to $ 46,000. The cost of living this year is $ 34,000. Charlotte plans to make the difference between income and expenditure for consumption by borrowing. Interest on the loan is 15% per year. Charlotte wants to pay the loan and interest within a year. How much money is left for next year that Charlotte can spend (consume)?
- You have determined in your mind that you would like to have a business of your own, although your father runs a family restaurant in your local city. You have therefore, decided to have a medium size snack and cocktails bar which will accommodate the cruise ship passengers who visit your city. You plan to keep the business for five years after which you will sell it off to your brother John for $2,000,000 and go off to do your Master’s Degree in the UK. Though you will be occupying the establishment from your grandmother for free, you have decided that you need to make some improvements to the property which will cost you $1,500,000. Additionally, you will spend $275,000 in bar stools, tables and decorations. If this space had been leased out, it would have fetched a lease rental of $75,000 per year. You will depreciate the assets over 7 years using MACRS. You have determined that you would need an average cash balance of $15,000 and inventory of $20,000 while Accounts payable should…2. A friend of yours is considering quitting his job as an engineer to become a wedding photographer. He thinks that he will make more money this way. His current job as an engineer pays him $87,500 annually. To switch to wedding photography, he will have to purchase photography equipment that will cost him $12,000. He also does not expect to make much money when he first starts out. He estimates that he would make $39,000 in his first year. But as he gets his name out there, he expects to make $7500 more each year. Assuming an interest rate of 5% and a 20-year analysis period, compute the net present worth of both options to recommend to your friend whetherhe should become a wedding photographer or not. Answer: ???= $1,090,425, ?W?= $1,212 ,678 Can someone show how this was solved?You have determined in your mind that you would like to have a business of your own, although your father runs a family restaurant in your local city. You have therefore, decided to have a medium size snack and cocktails bar which will accommodate the cruise ship passengers who visit your city. You plan to keep the business for five years after which you will sell it off to your brother John for $2, 000,000 and go off to do your Master's Degree in the UK. Though you will be occupying the establishment from your grandmother for free, you have decided that you need to make some improvements to the property which will cost you $1,500,000. Additionally, you will spend $275,000 in bar stools, tables and decorations. If this space had been leased out, it would have fetched a lease rental of $75,000 per year. You will depreciate the assets over 7 years using MACRS. You have determined that you would need an average cash balance of $15,000 and inventory of $20,000 while Accounts payable should…
- draw an issue tree: Recently, James got married and wanted to move to new houses so he wants to save $100,000 dollar in three years. James also is having 2nd baby so he need larger space, and his wife started a job so she needs a new room for job as well. But in order to go to larger house he needs another $100,000. How can he get the money? And getting loans and making money leading to difficulties in their work balance is not an option. How will he make money of $100,000 within 3 years.You graduated college six years ago with an undergraduate degree in Finance. Although satisfied withyour current job, your goal is to become an investment banker, and you wonder if an MBA degree wouldallow you to achieve that goal. After examining schools, you have narrowed your choice to eitherWilton University or Mount Perry College. Although internships are encouraged by both schools, to getcredit for the internship, no salary can be paid. Other than internships, neither school will allowstudents to work while enrolled on the MBA program. However, thanks to a bequest from yourgrandmother, your savings account has enough money to cover the entire cost of the MBA programYou currently work a money management firm, earning $53, 000 annually. Your salary is expected toincrease 3% per year until retirement. You expect to work for 38 more years. Your current job includesa fully paid health insurance plan. Your current average tax rate is 26%.The Ritter College of Business at Wilton…