MGMT310_lecture9 - Mark Markyourcalendars

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ark your calendars Mark your calendars Final exam time/location is now available Date: Saturday, May 8 Time: 8:00 am – 10:00 am (I know, it sucks) Location: STEW 130 (all sections report to this location)
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st time we discussed… Last time we discussed… Time value of money Need to compare cash flows from different points in time Annuities, Perpetuities, Growing Ann., Growing Perp. Special formulas for determining PV/FV of regular, periodic payments (or payments growing at a fixed rate) fective terest tes Effective interest rates How much interest are we really getting in a certain time period? ppropriate iscount epending n equency f F’s Appropriate discount rates depending on frequency of CF s Are we receiving cash flows monthly, semi annually, annually, etc.?
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Today’s personal finance lesson: credit card rates Let us suppose that you *just* opened a new credit card with the above pricing & terms, and let’s say you make a $1000 purchase with the credit card. For simplicity, let’s ignore the required minimum monthly payments. What will be your credit card balance in six months if… 1) You qualified for standard pricing? (what if you had transferred $1000 balance from another card?) 2) You qualified for elite pricing? (what if you had pulled out $1000 cash instead?)
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onds Bonds Bond : a loan made by investors to the issuer .
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This note was uploaded on 01/31/2011 for the course MGMT 310 taught by Professor Matthewjamesbarcaskey during the Spring '08 term at Purdue University-West Lafayette.

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MGMT310_lecture9 - Mark Markyourcalendars

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