fin 370 version 8 week 2 dq

What is the relationship between present and future value?

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When you graduate from college, you are offered the choice between a job with a starting salary of $30,000 per year which grows annually at 6% or a job with a starting salary of $40,000 per year which grows annually at 4%. How would you determine which is the best job to take if you assume you will stay in this position for 5 years? At what growth rate would you be indifferent between the two positions?

 

 

Take the cash budget you worked on this week and take it out two years, forecasting increases in income and expenses based on potential inflation.    If you hope to pay off debt within that time period, adjust your budget for that and see if you can possibly make that happen.

 Share with us any issues you may come across that would probably impact all students

 

Please provide at least two financial ratios to monitor the financial changes of a firm.  How are they calculated?

 

You have a 30 year mortgage at 4.5% on $150,000 with a start date of March 1, 2015.  What would be your monthly payment.  Now assume you add another $150 a month to your monthly payment.  When would the loan be paid off?  How much interest would you have saved.  (Feel free to use http://www.mortgagecalculator.org/.  Leave property tax and PMI off – to calculate monthly payments and http://www.bankrate.com/calculators/home-equity/additional-mortgage-payment-calculator.aspx to calculate the monthly payment