BUSN380 Week 8 Final Study Guide

BUSN380 Week 8 Final Study Guide - BUSN380 Personal...

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BUSN380 – Personal Financial Planning TCOs Covered: 1, 2, 3, 4, 5, 6, 7 Multiple Choice Question 32 ( 5 pts. Each) Short Essay Questions 13 ( 10 Pts. Each) Total Point Value: 290 Time Allowed _3.5_ hrs Other Study Tips:   Please  homework assignments.   
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ESSAY PART (130 Points): ( Each Essay Question is worth 10 points) TCO 1 Chap 1 – 3 Apps 1 & 2 (2 Questions) 10 pts each Time Value of Money definitions & calculations (Increases in an amt. of money as a result of interest earned) Pg 15 - 19 Using time value of money tables, calculate: - Future value of a lump sum, Pg 15 - 19 - Future value of a series of payments, Pg 35 - Present value of a lump sum from the to future - Present value of a series of payments 39 Net Worth Calculations Current Ratio Calculations to Pg 84 Rule of 72 & Doubling Pg 14 Financial Planning Calculations box on Pg. 56 A $100 benefit on which you are taxed is not worth as much as a non-taxable $100 benefit. Rule of 72 means an annual inflation rate of 4% means prices will double in 18 yrs. (72/4 =18) Re Savings, if you earn 6% your money will double in 12 yrs (72/6 = 12) Formula to Calculate the Tax-Equivalent Value: Interest Rate ÷ (1 – Tax Rate) Note on Pg 56 Risks are commonly associated with Personal Financial Decisions Steps in the Financial Planning Process - BUSN380 Week 1 TCO 1 Notes - Personal Finance Importance of a Safe Deposit Box Pg 78 - 79 during High Inflation Pg 14 Taxable Income vs. Tax-Exempt Benefit Pg 105 - 111 The Budgeting Process Pg 86 – 93 The main components of a Personal Balance Sheet & a Cash Flow Statement Pg 94 1 Question) 10 pts Sources of assistance for Federal Income Tax Return. Pg 118 - 120 Factors to consider when evaluating & comparing different Savings Plans Pg 146 -150 Exhibit 5 - Pg 151 Calculating Tax Returns (receiving a refund or owing additional taxes) Calculating the Average Tax Rate Pg 110 TCO 3 Chap 6 & 7 (3 Questions) 10 pts each Calculating Debt Payments-to-Income Ratio Calculating Interest Cost on a Loan
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Advantages & Disadvantages of Consumer Credit Pg 170 - 172 Debit/Credit Card Fraud Shopping for Credit Difference between Simple & Compound Interest P 151 TCO 4 Chap 8 & 9 (2 Ques) 10 pts each Time needed to recover the Cost of Refinancing a home Time Value of Money Calculation on Commission Cost Savings Replacement Cost Increases Medical Cost after Deductible & Percentage Coverage TCO 5 Chap 13 - 15 (2 Questions) 10 pts Asset Allocation Advantages Common Stock for Corporations & Investors Explain U.S. Government Treasury bill, Treasury Interest Rates Impact on Corporate Bonds Homeowner's Insurance Policy Disability Income Insurance Why investors purchase Bonds Calculating Rate of Return (Savings Yield Pg 150) TCO 6 & 7 Chap 16 -19
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This note was uploaded on 05/27/2011 for the course BUSN 380 taught by Professor Bloch during the Fall '10 term at DeVry NY.

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BUSN380 Week 8 Final Study Guide - BUSN380 Personal...

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