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Homework answers / question archive / 1)From the countries of which planetary hemisphere, North or South, does most FDI flow? And into the countries of which hemisphere does most FDI flow? 2)What is the current Market Description Federation University that forms the positioning strategy and Marketing Plan? 3)Question paper Layout References Mailings Review View Help Foxit PDF Search • A A Aa A EEA ??????? ???????? ?????
1)From the countries of which planetary hemisphere, North or South, does most FDI flow? And into the countries of which hemisphere does most FDI flow?
2)What is the current Market Description Federation University that forms the positioning strategy and Marketing Plan?
3)Question paper Layout References Mailings Review View Help Foxit PDF Search • A A Aa A EEA ??????? ???????? ?????. ??????? ??? ??????? ??????? 1 Normal 1 No Spac... Heading 1 Heading 2 Subtitle Subtle Em ab X, X ADA Title Font Paragraph Styles . Question 3: You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child's higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly. Investment 2 Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly. Required: Work on question a, b and c only a) Identify which Bank should Molly choose in Investment 1 by computing the effective annual interest rate (EAR)? b) Calculate the amount of money Molly would accumulate in Investment 1 after 15 years is she chooses Bank B? c) How much is the annual interest rate, assuming compounding annually Molly should aims at if she chooses to invest her $120 000 in a saving account to get the 450,000 fund ready in just 10 year ?
Question 4. You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child's higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly. Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly. Required: Work on questions d and e only d) Calculate the monthly payment Molly needs to contribute into ANZ Investment Fund to get $330,000 after 15 years in Investment 2? e) In investment 2, if Molly changes to contribute $1200/month to that super fund at the beginning of each month, how much money she would have in ANZ Investment fund after 15 years? f) Molly is offered an investment that will pay $12 000 each year forever. What is present value of this investment if the rate of return 14% applies?
1)Most FDI flows from Japan, followed by China and France which falls in Northern Hemisphere.
Most FDI are flowed into United States of America, followed by Hogkong in China and Singapore which also falls substantially in Northern Hemisphere.
2)
Market Description
Before you start any sales and marketing activities you should establish a solid knowledge of the market by making a market description.
If you don´t have a feeling of whom your customers are it becomes difficult to choose the right way to approach them.
Who are the customers
There are a lot of questions that could be asked in order to establish a picture of your customer.
You should know as much as possible about your potential customers. If you know the name and address of the customers then you have come very far in your marked research.
If you are a business that spend a lot of money on marketing you should maka a Marketing Plan
Know your competitors in the market
In the market you also find competitors. You have to find out what you are up against. On what level is the quality of the competitor’s product? What is the price? How big is their turnover? How is their marketing and web site? How is their product development? Where are their weak points?
3)
a) Bank A EAR = (1 + 0.085/2)^2 - 1 = 8.68%
Bank B EAR = (1 + 0.0845/4)^4 -1 = 8.722%
So bank B should be chosen to invest.
b) Amount accumulated in 15 years = 120000*(1.08722^15) = 420671.1602
c) Annaul Interest Rate = (450000/120000)^(1/10) - 1 = 14.131%
d) It is an ordinary annuity with a monthly payment amount let say A
FV of the annuity is = 330000
time is 15 years or 180 months
Using the future value formula for ordinary annuity
FV = A { [(1+i)^(n) - 1] / i }
where i = 7%/12, n = 180 months, A = monthly payment
330000 = A { [(1+0.07/12)^(180) - 1] / 0.07/12 }
=> A = 1041.133
e) Using the future value formula for ordinary annuity
FV = A { [(1+i)^(n) - 1] / i }
where i = 7%/12, n = 180 months, A = monthly payment = 1200
FV = 1200 { [(1+0.07/12)^(180) - 1] / 0.07/12 }
FV = 380354.756
f) Using the formula of perpetuity for investment
PV = A/i
where i = 14%, A = 12000
PV = 12000/0.14 = 85714.286
