PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
6th Edition
ISBN: 9781337118026
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 1, Problem 1LO
Summary Introduction
To discuss: Benefits of personal financial planning techniques while managing person X finance.
personal financial planning is a systematic process of considering important elements individual’s financial affairs and aimed to fulfil their financial goals.
Expert Solution & Answer
Explanation of Solution
The advantages of utilising personal financial planning techniques while managing person X finance:
The following are the benefits of using
- Avoid debts: The main benefit of managing personal finance efficiently is to avoid debts. By reducing usage of credit cards helps to reduce expenses and try to save money for future.
- More savings: By following proper management plans try to save money for future purposes it will helps during the time of retirement.
- A proper financial plan will helps to develop an abundance mind set.
- Future visibility.
- It improves risk management.
- It helps to improve the standard of living
- It ensures one to spend money wisely
- It generate wealth maximization
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What is an annuity?*
An investment that has no definite end and a stream of cash payments that continues forever
A stream of cash flows that start one year from today and continue while growing by a constant growth rate
A series of equal payments at equal time periods and guaranteed for a fixed number of years
A series of unequal payments at equal time periods which are guaranteed for a fixed number of years
If you were able to earn interest at 3% and you started with $100, how much would you have after 3 years?*
$91.51
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2. The formula for calculating future value (FV) is*
FV = PV/(1+r)^n
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FV = PV x (1+r)^n
FV = PV x (1+r)*n
Chapter 1 Solutions
PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
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