Hello Everyone,
I would like to start off by stating that we have a test on Personal Finance on, Thursday April 23rd, 2009. So Study Study Study!!
~***Personal Finance Review***~
4.1 Investing Money
Use compound interest formula
Use two spreadsheets
Use TVM Solver
Rule of 72
4.2 Investing for the Future
What is an RRSP – how does it work?
Use spreadsheets created
4.3 Investment Portfolios
Types of investments
Strategies based on age – not complex
4.4 Leasing
Residual values
Use LEASEBUY spreadsheets
4.5 Mortgages
Basic terminology- amortization period, term, rate, semi-annual(2)
Use TVM solver to calculate payments
4.6 Renting vs. Buying
Use RENTBUY spreadsheet – corrections
Advantages & Disadvantages of Renting & Buying a House.
*** Using TVM Solver***
N: Total Number of payments
I%: annual interest rate as a percent
PV: present value
PMT: payment each period
FV: future value, or accumulated amount
P/Y: number of payments per year
C/Y: number of compounding per year.
TVM Question [Example]
1. Solve for FV (future value)
You decide to invest $6500. The bank offers an interest rate of 8.25% compounded annually. What will your money be worth in 7 years if the interest rate remains unchanged?
N=7 N=7
I%=8.25 I%= 8.25
PV= -6500 PV= -6500
PMT=0 PMT= 0
FV=0 FV= 11321.62307
P/Y=1 P/Y= 1
C/Y=1 C/Y= 1
**It shows that in 7 years your money will be worth $11321.62.**
{*For More Review You Can Go To Page 201 In Your Text**}
Today in class we learned about tutorial 4.6 Renting vs. Buying. We learned about Advantages and Disadvantages of Renting and Buying.
Here are some Advantages and Disadvantages of Renting or Buying a house.
Advantage Disadvantage
Renting : Not locked In Not Your Own
Cheaper Can Not Renovate
Short- Term Money Down the DrainI would like to start off by stating that we have a test on Personal Finance on, Thursday April 23rd, 2009. So Study Study Study!!
~***Personal Finance Review***~
4.1 Investing Money
Use compound interest formula
Use two spreadsheets
Use TVM Solver
Rule of 72
4.2 Investing for the Future
What is an RRSP – how does it work?
Use spreadsheets created
4.3 Investment Portfolios
Types of investments
Strategies based on age – not complex
4.4 Leasing
Residual values
Use LEASEBUY spreadsheets
4.5 Mortgages
Basic terminology- amortization period, term, rate, semi-annual(2)
Use TVM solver to calculate payments
4.6 Renting vs. Buying
Use RENTBUY spreadsheet – corrections
Advantages & Disadvantages of Renting & Buying a House.
*** Using TVM Solver***
N: Total Number of payments
I%: annual interest rate as a percent
PV: present value
PMT: payment each period
FV: future value, or accumulated amount
P/Y: number of payments per year
C/Y: number of compounding per year.
TVM Question [Example]
1. Solve for FV (future value)
You decide to invest $6500. The bank offers an interest rate of 8.25% compounded annually. What will your money be worth in 7 years if the interest rate remains unchanged?
N=7 N=7
I%=8.25 I%= 8.25
PV= -6500 PV= -6500
PMT=0 PMT= 0
FV=0 FV= 11321.62307
P/Y=1 P/Y= 1
C/Y=1 C/Y= 1
**It shows that in 7 years your money will be worth $11321.62.**
{*For More Review You Can Go To Page 201 In Your Text**}
Today in class we learned about tutorial 4.6 Renting vs. Buying. We learned about Advantages and Disadvantages of Renting and Buying.
Here are some Advantages and Disadvantages of Renting or Buying a house.
Advantage Disadvantage
Renting : Not locked In Not Your Own
Cheaper Can Not Renovate
No Pets/ No Parties:(
Buying: Your Own Locked In
You Can Do Whaterver You Want Monthly Mortgage and Other Bills
Long-Term
Expensevi
This may come in handy to those graduating and moving next year. This may also help you when it comes to renting a house.
**For more information on tutorial 4.6 Renting vs. Buying you can go to page 191 in your text.**
This concludes this blog. Remember to STUDY for the test Thursday! Have a Great Day!
Peace Brady!
My Bad I Had a table Showing the Advantages and Disadvantages, but it all bundled together so if it doesnt make any sense I can Redo it!
ReplyDeleteWell this is a long entry, but your review is really just my outline that I handed out. Yeah, you should probably re-do the advantages and disadvantages.
ReplyDelete