New Future Bikes: Business

Sunday, September 25, 2011

Financial Planning

Financial Planning

1.Establish your goals and objectives
2.Develop a strategy to meet your needs
3.Make Recommendations
4.Implement Recommendations
5.Review your goals and current situation

Thursday, August 18, 2011

Savings and loans

Bill start saving for his retirement with an initial $1000 deposit and an additional $100 each month. He does this for 40 years and earns 8% compoind interest on the average.

Initial amount $1,000.00 APR (Annual percentage rate)
Interest rate 8.00%
Length 40 years
Monthly Deposit $100.00
Final amount $373,374.17
Total payments $49,000.00
Interest earned $324,374.17

Ted has made $10000 in loans for his college tuition. She promises to pay it off in 5 years in equal monthly payments. He pays 3% interest compounded monthly.What is her payment?

Initial amount 10000
Interest rate 3%
Years 5 APR
Monthly payment $179.69

Sue plans to buy an car when she graduates in 2 years so she starts a savingsaccount. She wants to make a down payment of $5000. She earns 2% APR on the account.
Interest rate 2% APR compounded weekly
Length 2 years
Final amount $5,000
Weekly payment $47.13

Joe bought a savings bond that paid 4% APR compounded annually for 20 years.Today it is worth $5000. What did the bond cost when it was purchased?

Interst rate 2%
Length 20 years
Final value $5,000
Beginning value $3,364.86