Princess Billi Jo♥ asked:


Marcia and Phil Helm, a couple in their thirties, have been married for several years. They have no children, and each has a professional career. Marcia is a trainee for a management position at a large department store, and Phil is an engineer at an electronics firm. Their careers have promising futures, but neither has exceptionally good income protection in the event of a layoff. The Helms have saved around $8000, and $7400 of it is in a 3.5% savings account at the credit union where Phil works. They have about $600 in a regular checking account (with Mid-City Bank) that doesn’t pay any interest. The Helms’ combined take home pay is about $5000/month, and Phil thinks they should take the $7400 out of their savings and invest in the stock market to earn a better return. He points out that, excluding their life insurance policies, they have no other investments. Marcia thinks this plan might be too risky, but she does agree that the 3.5% yield is not very good.

Recently, at a party, a friend suggested they take out certificates of deposit (CDs) with long maturities because the CDs were paying around 6% in interest. The Helms liked her advice and stopped at Phil’s credit union to get more information on the CDs. After talking with the office manager for a while, though, they became more confused. He didn’t favor CDs; although, the union had them available. He pointed out that interest rates on the new money market accounts were around 4% and didn’t require “freezing” your money for a year or more. He also indicated that the union could offer a super NOW account that would allow the Helms to close their current unproductive checking account with Mid-City. This account would give them unlimited check writing privileges with no service charges and would pay 3% interest; however, it would require a minimum balance of $2500. If their balance went below the minimum in a month, interest would be only 2%.

The Helms left the credit union without taking any action. They have asked you for advice on managing their liquid deposits.

In 3-4 paragraphs, answer the following questions.
Do you feel the Helms’ $8000 liquid balance is adequate? Explain.
Explain the relative risks and potential advantages of CDs. Explain under what condition(s) you would recommend them for the Helms.
Do you agree with Phil that some of their funds should be invested in the stock market? Explain.
What are your recommendations for a cash management plan for the Helms?

Drea asked:


A $1,000 investment in common stocks at the beginning of 2000 was worth $______ at the end of 2000.

a) 2,160
b) 909
c) 254
d) 1,160

king of class asked:


What is the annual premium of Katy’s car insurance if the base premium is $250.25 and the rating factor is 2.35?

Silly me =p asked:


Business HW question?
1 – when the federal reserve wishes to _______ interest rates, it _______ the amount of funds at commerical banks.

a- increase; increases
b- reduce; reduces
c- reduce; increases
d- both A & B

NEXT ONE

If the government borrows funds to finance a military build-up in the middle east, this will cause a

a- shift in the demand for funds
b- shift in the supply of funds
c- shift in monetary policy
d- shift in open-market operations

lalalala asked:


Tony withdraws $450 monthly for 7 years and 3 months. How much was his initial investment at 6% interest?

Angie S asked:


Im in 12th grade and i have a more boring topic than everyone else so i want to do something more exciting than a powerpoint for my presentaion. it can be anything fun, the teacher is really cool

Princess Billi Jo♥ asked:


Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They now rent an apartment but are considering purchasing a condominium for $100,000. If they do, a down payment of $10,000 will be required.

They have discussed their situation with Lew McCarthy, an investment advisor and personal friend, and he has recommended the following investments:

The condominium – expected annual increase in market value = 5%.
Municipal bonds – expected annual yield = 5%.
High-yield corporate stocks – expected dividend yield = 8%.
Savings account in a commercial bank-expected annual yield = 3%.
High-growth common stocks – expected annual increase in market value = 10%; expected dividend yield = 0.
Calculate the after-tax yields on the foregoing investments, assuming the Brittens have a 28% marginal tax rate (based on Public Law 108-27, The Jobs and Growth Tax Relief Reconciliation Act of 2003).
How would you recommend the Brittens invest their $40,000? Explain your answer.

Adomaaa asked:


A person with a total tax liability of $4,350 and withholding of federal

taxes of $3,975 would:

owe $4,350.

owe $375.

receive a refund of $4,350.

receive a refund of $375.

Candace C asked:


ok I struggle with math ok well numbers in general. Nothing that involves a number makes sense to me. I’m more creative lol. Ok heres the question: Find the finance charges on a 7.5%, 18 month single-payment loan when interest is computed using the simple interest method. Find the finance charges on the same loan when interest is computed using the discount method. Determine the APR in each case.

If you could – please explain generally what it is your doing so I understand – much appreciated.