Resolve and comment 4 Problems : • The task consists of developing and justifying each of the problems solution and additionally summarizing their funding in the “Summary Table” clearly. •

COURSE NAME: Business Finance I

Assesment 1: Exercices 1: Resolve and comment 4 Problems According to Topics 1 and 2:

Details of the task :

· Individual

· The task consists of developing and justifying each of the problems solution and additionally summarizing their funding in the “Summary Table” clearly.

· Format: Document and upload in pdf

Formalities:

· Develop and solve each problem and Include your final answers in a “Summary Table” too.

· Font: Arial 12,5 pts.

· Text alignment: Justified.

Submission: Due in Week (3) to complete this exercise Via Moodle (Turnitin). Deadline 17 october 2021 at 23.59 CEST

Weight: This task is a 30% of your total grade for this subject.

It assesses the following learning outcomes:

· Outcome 1: Introduction to Financial Management

· Outcome 2: The Time Value Money

Rubrics

	Descriptor
9-10	The student demonstrates an excellent understanding of the concepts.
8-8.9	The student demonstrates a good understanding of the concepts.
7-7.9	The student demonstrates a fair understanding of the concepts.
6-6.9	The student demonstrates some, but insufficient understanding of the concepts.
3-5.9	The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student.
1-2.9	The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts.
0	The student leaves the question blank or cheats.

Start here:

Summary Table
Problem	Brief Solution	Weight
1	a 10% b 10% C 10% d 10%	40%
2		25%
3		25%
4		10%

Problem 1:

You have won the lottery and have received $ 12,000. As a financial expert, you are analyzing different options to invest this money:

a. Calculate the future of 12.000 $, given that it will be invested for 10 years at annual interest rate of 8%.

b. Recalculate part (a) using compounding period that is bimonthly.

c. Now, lets look at what might happen if you invest the money at a rate 12% rather than 8%; recalculate part (a) for a semiannual interest rate.

d. With respect to the changes in the interest rate and length of time the money is invested in parts a and c, what conclusion can you draw?

Picture the problem, decide on a solution strategy, solve and analyze (40 p).

Problem 2:

If you deposit 100,000 $ today into an account earning an annual rate of return of 11%, in the third year how much interest would be earned? Picture the problem, decide on a solution strategy, solve and analyze (25 p).

Problem 3:

You are offered 150,000 $ today or 300,000 $ in 15 years. Assuming that you can ear 11% on your money, which should you choose? Picture the problem, decide on a solution strategy, solve and analyze (25 p).

Problem 4:

Explain the difference between General Partnership and Limited Partnership as a legal form of business organization (10 p).

The assignment should include the following information:

1. Units covered: 1 and 2

2. Most important topic the students need to focus on:

· Picture the time value of money problems, decide on a solution strategy, solve and analyze.

· Understanding Foundations of Finance Principles

· Future value calculation

· Calculate Simple and compound interest

· How to analyze Present-value comparison