Discussion and problems for 2 classes

POL 110: U.S. Government:

DISCUSSION:

Fair and Balanced – Please respond to the following:

• Choose a current political issue within the past month. Find an article about the political issue selected from both a liberal and conservative news source (not social media).
• Provide a brief summary of the articles and discuss how each article covers the issue.
• Which article do you think did a better job of presenting the facts of the issue most clearly and objectively?

FIN 100: Principles of Finance:

DISCUSSION :

The Crisis of Credit Visualized – HD

VIDEO: The Crisis of Credit Visualized

Contagion Effects of Credit Crisis: Explain how the credit crisis adversely affected many other people beyond homeowners and mortgage companies. Do you believe the impact of the credit crisis is still being felt today? Please explain, be thorough in your response and provide any available citations.

Exercise 1: Go to the Federal Reserve website, http://www.federalreserve.gov. Go to “Economic Research and Data,” and access “Consumer Credit.” Find interest rates charged by commercial banks on new automobile loans, personal loans, and credit card plans. (a) Compare the current or recent level of interest rates among the three types of loans. (b) Compare trends in the cost of consumer credit provided by commercial banks over the past three years.

Problem 2: Find the future value of $10,000 invested now after 5 years if the annual interest rate is 8 percent. (a) What would be the future value if the interest rate is a simple interest rate? (b) What would be the future value if the interest rate is a compound interest rate?

Problem 3: Determine the future values if $5,000 is invested in each of the following situations: (a) 5 percent for ten years (b) 7 percent for seven years (c) 9 percent for four years

Problem 4: You are planning to invest $2,500 today for three years at a nominal interest rate of 9 percent with annual compounding. (a) What would be the future value of your investment? (b) Now assume that inflation is expected to be 3 percent per year over the same three-year period. What would be the investment’s future value in terms of purchasing power? (c) What would be the investment’s future value in terms of purchasing power if inflation occurs at a 9 percent annual rate?

Problem 5: Find the present value $7,000 to be received one year from now, assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.

Problem 7: Determine the present value if $15,000 is to be received at the end of eight years and the discount rate is 9 percent. How would your answer change if you had to wait six years to receive the $15,000?

Problem 16: Use a financial calculator or computer software program to answer the following questions: (a) What would be the future value of $15,555 invested now if it earns interest at 14.5 percent for seven years? (b) What would be the future value of $19,378 invested now if the money remains deposited for eight years and the annual interest rate is 18 percent?

Problem 17: Use a financial calculator or computer software program to answer the following questions: (a) What is the present value of $359,000 that is to be received at the end of 23 years if the discount rate is 11 percent? (b) How would your answer change in (a) if the $359,000 is to be received at the end of 20 years?

Problem 19: Use a financial calculator or computer software program to answer the following questions: (a) What would be the future value of $19,378 invested now if the money remains deposited for eight years, the annual interest rate is 8 percent, and interest on the investment is compounded semi-annually? (b) How would your answer for (a) change if quarterly compounding were used?