Tutorial_L03_Q - savings account? Explain. a. Bank A pays...

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CC3152 Principles of Financial Planning Tutorial 3 – Questions on Lecture 3 ASSETS MANAGEMENT 1 Discussion Questions 1. What is cash management and its major functions? 2. Give two reasons for holding liquid assets. In general, what is the amount should you save in the form of liquid reserves? 3. If you have to put $5,000 in a savings account for a year, find the effective rates of interest of the two banks. Which one of the following bank will you choose to open the
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Unformatted text preview: savings account? Explain. a. Bank A pays interest at the rate of 10 percent for 1 year. b. Bank B pays interest at the rate of 5 percent, compounded quarterly. 4. Evaluate the advantages and disadvantages of leasing a car. 5. Briefly describe the various benefits for owning a home. 6. If you can earn 12%, how much will you have to save each year if you want to retire in 35 years with $1 million?...
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This note was uploaded on 03/17/2009 for the course AF 3152 taught by Professor Peggy during the Spring '09 term at Hong Kong Polytechnic University.

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