FIN 300 Exam 1 Homestretch Review Checklist(1)

FIN 300 Exam 1 Homestretch Review Checklist(1) - FIN 300...

Info icon This preview shows pages 1–2. Sign up to view the full content.

FIN 300 – Exam 1 – “Homestretch” Checklist Here is a list of problem types and issues that you might see – by the way, this is nothing new relative to what we have talked about in class (or the topics and types of calculations presented in my lecture slides) – it’s just a recap Time Value of Money – Ch.’s 5&6 o Lump Sum Formula Problems – formula on formula sheet or use financial calculator Solve for FV (compound interest) Solve for PV (discounted) Solve for i (solve for rate of return or change) For example, for change in home price or change in some number such as sales for a company Solve for N (how long it takes in periods for a given change or growth to take place) Be sure and read test problem – if it asks for years, for example, don’t forget to convert to number of years – don’t forget that the “i” and the “n” have to match – correspond to the same period Know how to do lump-sum problems, if the compounding is not annual – for example, semi-annual, quarterly, monthly, etc. o Know how to calculate the APR vs EAR – formula on sheet or use financial calculator If you are comparing 2 or more investment opportunities, you always want the higher effective rate (use EAR as a comparison - not APR) If you are comparing loan rates (when you are borrowing money), you
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern