If annuity costs $200,000 which yields 7% annually for 5 years, how much cash can an individual with-drawl each year such that the principal is consumed at the end of the time period?
I am having a hard time with this class because I am taking this online and there is really no explanation for figuring these types of problems. This is an example question that will be on our test. What are the steps in figuring this? Any help is appreciated, thank you!
I wonder how other people feel about having a personal finance consultant to manage their wealth. How many have the service? How long they stay with the same consultant? Are people satisified with their consultant? Thank you.
What are some of te better online forums where I can discuss and ask questions about personal finance, bankruptcy, dealing with unruley collectors and cleaning up my credit report after filing bankruptcy?
I know it will take YEARS to rectify my credit report but there are always dirty collectors who refuse to make the appropriate reportings and i’d like to talk with people who are having similar experiences that i am having…
And what exactly would it be called and how do I go about doing it? I want to be able to teach personal Finance. Home Budgeting, basic estate planning and basic investing. What is this and do I need a degree to do it? If so, in what?
Please help! Managing money is my only talent, and I have a passion for teaching it to others. How can I translate this into a career for myself?
P.S. I’m a stay-at-home mom, we own or own home, and are raising 4 kids with no government assistance on my husband’s $34,000 a year. I’ve been told I have a flair for managing money. ;p
I have been searching for a good free personal finance software that has both nice asthetics and good usability. Any suggestions?
You would be a great help for answering this. Thanks!
1. Do you believe there is a product out there that educates people on personal finance effectively?
2. If so, do you believe these products are priced fairly?
3. If given the choice, would you participate in a membership forum that promotes financial literacy through progression programs, meaningful discussions, and award honors?
4. How much do you think is a reasonable price to join a forum like the one described in the last question?
5. What type of information would you like to see if this forum existed?
Below is the question- I just cant seem to figure out how to show for the rates given below as solution using a BA II calculator or any other financial calculator. Does anyone know how to solve for the rates using a calculator?
Bentley Inc. has bonds on the market making semiannual payments, with 12 years to maturity, and selling for $1,200. At this price, the bonds yield 20 percent. Note: default value for face value is $1000. What must the coupon rate be on Bentley Inc.’s bonds? Round your answer to two decimal places
The correct answer was: 24.45%
As the bonds make semiannual payments:
Time to Maturity = 12yrs × 2 = 24 years
YTM = 20% / 2 = 10%
Let’s denote C as the coupon paid each period
Bond value = [Annuity present value of the coupons] + [Present value of the face amount]
1,200 = $C × (1 – 1/1.1024)/0.10 + 1000/1.1024
Solve the equation, we get C = 122.26. Therefore, coupon rates = 2 × 12.23% = 24.45%
Thanks
I know nothing about personal finance. My parents never taught me and I need a complete introuduction to budgeting, saving, and investing. Step by step guidande kind of stuff. Does any have advice?
How can so many be so ignorant about something so important? Do ppl acutally think that that the gov’t is going to give them 800 bucks; do they not realize that they have to pay it back on next years income tax? Or at least have that deducted from their refund. How can so many fall for the Payday loan scams? How did so many get into ARM mortgages? Why don’t ppl educate themselves about personal finance?
Probably a stupid question but I’m confused:
What is the difference between present value of an annuity and future value of an annuity?
I know the formulas, but I just want to know the different uses for them.
The way I understand it right now is the present value is the value today that is equivalent to all the payments+interest.
So how is that different than the future value that those payments will add up to?
Thanks
I am looking for a personal finance program for budgeting and tracking investments but everything I look into seems to track everything monthly. I get paid bi-monthly and want to budget bi-monthly. Anyone have any recommendations?
I am definitely considering entering the insurance industry, notably life/health and I also might want to sell annuities. But would it be beneficial to stay in finance with the economy being so bad???
I’m thinking of starting a personal finance blog. The types of topics I plan to cover are: budgeting, building wealth, risk management, asset management, and other topics that, admittedly, can be a bit “dry” to many people. I want to attract a wide variety of people, not just bean-counters; I’d like it to be for everyone.
What would it take to make you read a blog like that? Humor? Some additional, more interesting topics? Bios of wealthy people? Contests?
I think that schools should teach personal finance because it is something we ALL use. I have never used Beolulf or any lituarture read in school. Maybe no one told me why it is so improtant.
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Managing Young Choirs – Volume 2: Promoting and Fund-Raising: How to Market and Finance the Chorus