BUSN 380 DEVRY ENTIRE COURSE

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BUSN 380 DEVRY ENTIRE COURSE

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BUSN 380 DeVry Entire Course

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BUSN 380 DeVry Week 1 Discussion 1

Time Value of Money (graded)

Incorporating time-value-of-money concepts and information from well-developed personal financial statements, identify your long-term financial goals and discuss the pertinent aspects for realizing these long-term financial goals. Explain the choices that you must make and how career planning will also fit into your plan.

BUSN 380 DeVry Week 1 Discussion 2

Opportunity Cost (graded)

Identify, quantify, and discuss the opportunity costs that arise from your decision to attend DeVry University. Using the concept of present value analysis, how would you justify your decision to acquire a college degree?

BUSN 380 DeVry Week 2 Discussion 1

Disposable Income (graded)

Identify and present all taxes you pay during the course of a typical year. Include taxes that are called fees (such fees are really taxes by another name). Some of the taxes you pay may have to be estimated (i.e., sales taxes). What is the percentage proportion of these taxes in relation to your income, and—with respect to your disposable income (that is, income after taxes)—what are the implications insofar as your spending behavior is concerned?

BUSN 380 DeVry Week 2 Discussion 2

Alternative Savings Vehicles (graded)

Identify the savings (investment) instruments you use or have used in the past (if you haven’t used any, identify those that you are most likely to use). Now, identify a number of alternative savings (investment) instruments that you have not used (or are least likely to use). Compare your two lists. Analyze the trade-offs that emerge. Why have you selected certain instruments in the past? Why may you use specific savings (investment) instruments in the future? Why will you decide to not use certain instruments in the future?

BUSN 380 DeVry Week 3 Discussion 1

Hazardous to Your Health! (graded)

Using the Internet, locate a source that identifies the number of personal bankruptcies that have occurred in the United States during a relatively recent time period. Locate and report the results of Internet (or other) sources that assess the role played by credit card debt in relation to personal bankruptcies declared. What are the general conclusions regarding the effects of credit card debt upon bankruptcy filings? Do you believe that credit card debt is the only cause of bankruptcy? Are there any additional factors that can lead a consumer to make a personal bankruptcy decision?

BUSN 380 DeVry Week 3 Discussion 2

Credit Card Balances (graded)

As a proportion of your personal net worth (total assets minus total liabilities), identify the proportion of credit card debt you currently have outstanding (or have had outstanding at some point in your life). Identify the expenditures that have given rise to your credit card debt. Which expenditures were discretionary and which were not? Discuss the implications. Are there any strategies that you can implement in order to better manage and reduce credit card debt? What strategies have you used?

BUSN 380 DeVry Week 4 Discussion 1

Portfolio Diversification (graded)

Identify any long-term investment instruments you use or have used in the past (if you haven’t used any, identify those that you are most likely to use). Include any retirement funds established at work and pension/retirement contributions made by your employer. Assess whether or not your overall investment portfolio is efficiently diversified. Why is there a lack of diversification? What steps can you take to modify this? If you plan to invest long term, what steps will you take towards diversification?

BUSN 380 DeVry Week 4 Discussion 2

Portfolio Risk (graded)

Using the investment portfolio you identified for this week’s first discussion question, informally identify the beta for each of the asset components of this portfolio. Include your reasoning for the betas you have identified. (If you have not formally invested in a portfolio yet, find 3–5 asset components that you would want to invest in as a portfolio, and informally identify the beta for these asset components). Now, identify the overall beta of your investment portfolio and explain how you arrived at this result. What implications can you draw from this exercise? How does each component beta differ from the portfolio beta, and why?

BUSN 380 DeVry Week 5 Discussion 1

Payment Obligations (graded)

As a percentage of your estimated monthly disposable income (which you identified in Week 2), what proportion is represented by your monthly automobile, mortgage, and/or rental payments? What is the percentage remaining after those monthly expenses have been deducted? Assess and discuss the implications in terms of how they influence your personal financial planning.

BUSN 380 DeVry Week 5 Discussion 2

Subsistence Spending (graded)

Suppose you found yourself in a position where your monthly level of income was cut in half. Assume this misfortune will persist for the long term. Discuss the effect such a salary reduction would have on your current lifestyle. What conclusions can you draw? What changes would you make regarding your expenses and how would you implement any new financial strategies?

BUSN 380 DeVry Week 6 Discussion 1

Insurance Trade-Offs (graded)

What forms of insurance coverage do you currently carry and pay for? As a percentage of your estimated monthly disposable income (which you identified in Week 2), what proportion do these coverages represent? Are there areas where you feel you are underinsured? Overinsured? What trade-offs are involved in determining the amount of insurance coverage you currently carry?

BUSN 380 DeVry Week 6 Discussion 2

Lowering Insurance Costs and Risks (graded)

What strategies might you implement to lower your insurance costs, while at the same time minimizing the risks involved in lowering such coverage? For example, in the area of health insurance, ask whether you are a smoker. In the area of auto insurance, how could your driving habits change?

BUSN 380 DeVry Week 7 Discussion 1

Zero-Based Asset (graded)

U.S. Treasury bills held to maturity have a beta of zero. Why? Discuss the implications of this risk-return trade-off with respect to your overall investment portfolio as you approach retirement age. Are there any assets that you would avoid investing in as you near retirement age?

BUSN 380 DeVry Week 7 Discussion 2

Home Valuation and Estate Taxes (graded)

Discuss the factors that may lead to an appreciation in the value of a home over the next 15 years. Discuss the factors that may lead to a depreciation in the value of a home over the next 15 years. How will the value of your home affect the amount of tax to which your estate will be liable subject to your death?

BUSN 380 DeVry Week 1 Problem Set 1

Problem Set 1 (Note: Some of these problems require the use of the time value of money tables in the Chapter 1 Appendix).

  1. Ben Collins plans to buy a house for $65,000. If that real estate property is expected to increase in value 5 percent each year, what would its approximate value be seven years from now?
  2. At an annual interest rate of five percent, how long would it take for your savings to double?
  3. In the mid-1990s, selected automobiles had an average cost of $12,000. The average cost of those same motor vehicles is now $20,000. What was the rate of increase for this item between the two time periods?
  4. A family spends $28,000 a year for living expenses. If prices increase by 4 percent a year for the next three years, what amount will the family need for its living expenses?
  5. What would be the yearly earnings for a person with $6,000 in savings at an annual interest rate of 5.5 percent?
  6. Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her $60 for this service. Over a period of 10 years, how much does Elaine gain from preparing her own tax return? Assumes she can earn 3 percent on her savings.
  7. Tran Lee plans to set aside $1,800 a year for the next six years, earning 4 percent. What would be the future value of this savings amount?
  8. If you borrow $8,000 with a 5 percent interest rate to be repaid in five equal payments at the end of the next five years, what would be the amount of each payment? (Note: Use the present value of an annuity table in the Chapter 1 Appendix.)
  9. Based on the following data, compute the total assets, total liabilities, and net worth. Liquid assets, $3,670 Household assets, $89,890 Investment assets, $8,340 Long-term liabilities, $76,230 Current liabilities, $2,670

10.Which of the following employee benefits has the greater value? Use the formula given in the “Financial Planning Calculations” – “Tax-Equivalent Employee Benefits” box found in Chapter 2 to compare these benefits. (Assume a 28 percent tax rate.)

A nontaxable pension contribution of $4,300 or the use of a company car with a taxable value of $6,325.

BUSN 380 DeVry Week 2 Problem Set 2

Problem Set 2

  1. Thomas Franklin arrived at the following tax information:
  • Gross salary, $46,660
  • Interest earnings, $225
  • Dividend income, $80
  • One personal exemption, $3,400
  • Itemized deductions, $7,820
  • Adjustments to income, $1,150

What amount would Thomas report as taxable income?

  1. What would be the net annual cost of the following checking account?

Monthly fee, $3.75; processing fee, 25 cents per check; checks written, an average of 22 a month.

  1. What would be the average tax rate for a person who paid taxes of $4,864.14 on a taxable income of $39,870?
  2. A payday loan company charges 4 percent interest for a two-week period. What would be the annual interest rate from that company?
  3. What is the annual opportunity cost of a checking account that requires a $350 minimum balance to avoid service charges? Assume an interest rate of 6.5 percent.

BUSN 380 DeVry Week 3 Problem Set 3

Problem Set 3

  1. Louise McIntyre’s monthly gross income is $2,000. Her employer withholds $400 in federal, state, and local income taxes and $160 in Social Security taxes per month. Louise contributes $80 per month for her IRA. Her monthly credit payments for VISA, MasterCard, and Discover card are $35, $30, and $20, respectively. Her monthly payment on an automobile loan is $285. What is Louise’s debt payments-to-income ratio? Is Louise living within her means?
  2. Calculating Debt Payments – to – Income Ratio. Suppose that your monthly net income is $2,400. Your monthly debt payments include your student loan payment, a gas credit card and they total $360. What is your debt payments – to – income ratio?
  3. Dave borrowed $500 for one year and paid $50 in interest. The bank charged him a $5 service charge.
  • What is the finance charge on this loan?
  • Dave borrowed $500 on January 1, 2006, and paid it all back at once on December 31, 2006. What was the APR?
  • If Dave paid the $500 in 12 equal monthly payments, what is the APR?
  1. Calculating Simple Interest on a Loan. Damon convinced his aunt to lend him $2,000 to purchase a plasma digital TV. She has agreed to charge only 6 % simple interest, and he has agreed to repay the loan at the end of one year. How much interest will he pay for the year?
  2. After visiting several automobile dealerships, Richard Welch selects the car he wants. He likes its $10,000 price, but financing through the dealer is no bargain. He has $2,000 cash for a down payment, so he needs an $8,000 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,000 for a period of four years at an add-on interest rate of 11 percent.

Questions

  1. What is the total interest on Richard’s loan?
  2. What is the total cost of the car?
  3. What is the monthly payment?
  4. What is the annual percentage rate (APR)?

BUSN 380 DeVry Week 4 Problem Set 4

Problem Set 4

  1. Determining Profit or Loss from an Investment. Three years ago, you purchased 150 shares of IBM stock for $88 a share. Today, you sold your IBM stock for $103 a share. For this problem, ignore commissions that would be charged to buy and sell your IBM shares.
  1. What is the amount of profit you earned on each share of IBM stock?
  2. What is the total amount of profit for your IBM investment?
  1. Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment’s value has decreased to $7,400 by the end of the year.
  1. What is the rate of return for this investment?
  2. Is the rate of return a positive or negative number?
  1. Calculating Earnings Per Share, Price-Earnings Ratio, and Book Value. As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, and 750,000 outstanding shares of common stock.
  1. Calculate the earnings per share of Bozo Oil’s common stock.
  2. Assuming that a share of Bozo Oil’s common stock has a market value of $40, what is the firm’s price-earnings ratio?
  3. Calculate the book value of a share of Bozo Oil’s common stock.
  1. Determining Interest and Approximate Bond Value. Assume that three years ago, you purchased a corporate bond that pays 9.5 percent. The purchase price was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 8 percent.
  1. What is the annual dollar amount of interest that you will receive from your bond investment?
  2. Assuming that comparable bonds are paying 8 percent, what is the approximate dollar price for which you could sell your bond?
  3. In your own words, explain why your bond increased or decreased in value.
  1. Using Margin. Bill Campbell invested $4,000 and borrowed $4,000 to purchase shares in Wal-Mart. At the time of investment, Wal-Mart was selling for $45 a share.
  1. If Bill paid $30 commission, how many shares could Bill buy if he used only his own money and did not use margin?
  2. If Bill paid $50 commission, how many shares could Bill buy if he used his $4,000 and borrowed $4,000 on margin to buy Wal-Mart stock?
  3. Assuming that Bill did use margin, paid $90 commission to sell his stock, and sold his Wal-Mart stock for $53, how much profit did he make on his Wal-Mart investment?
  1. Calculating yields. Assume you purchased a corporate bond at its current market price of $850 on January 2, 2002. It pays 9 percent interest and it will mature on December 31, 2011, at which time the corporation will pay you the face value of $1,000.
  2. Determine the current yield on your bond investment at the time of purchase.
  3. Determine the yield to maturity on your bond investment.

BUSN 380 DeVry Week 5 Problem Set 5

Problem Set 5

  1. Tammy Monahan is considering the purchase of a home entertainment center. The product attributes and weights she plans to consider are:

Portability .1

Sound projection .6

Warranty .3

Tammy rated the brands as follows:

portability sound projection warranty
Brand A 6 8 7
Brand B 9 6 8
Brand C 5 9 6

Using the Consumer Buying Matrix presented in Chapter 8, conduct a quantitative product evaluation rating for each brand. What other factors is Tammy likely to consider when making her purchase?

  1. Based on the following, calculate the costs of buying and of leasing a motor vehicle.
Purchase Costs Leasing Costs
Down payment $1,500 Security deposit $500
Loan payment $450 for 48 months Lease payment $450 for 36 months
Estimated value at End of loan $4,000 End of lease charges $600
Opportunity cost interest rate: 4 percent
  1. You can purchase a service contract for all of your major appliances for $180 a year. If the appliances are expected to last for 10 years, and you earn 5 percent on your savings, what would be the future value of the amount you would pay for the service contract?
  2. You estimate that you can save $3,800 by selling your own home rather than using a real estate agent. What would be the future value of that amount if invested for five years at 7 percent?
  3. John Walters is comparing the cost of credit to the cash price of an item. If John makes a $60 down payment, and pays $34 a month for 24 months, how much more would that be than the cash price of $695?

BUSN 380 DeVry Week 6 Problem Set 6

Problem Set 6

  1. For each of the following situations, what amount would the insurance company pay?
  1. Wind damage of $835; the insured has $500 deductible.
  2. Theft of a stereo system worth $1,300; the insured has a $250 deductible.
  3. Vandalism that does $425 of damage to a home; the insured has a $500 deductible.
  1. Beverly and Kyle Nelson currently insure their cars with separate companies paying $650 and $575 a year. If they insure both cars with the same company, they would save 10 percent on the annual premiums. What would be the future value of the annual savings over ten years based on an annual interest rate of 6 percent?
  2. As of 2008, per capita spending on health care in the United States was about $8,000. If this amount increased by 5 percent a year, what would be the amount of per capital spending for health care in 10 years?
  3. Sarah’s comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $8,893. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,000. Was her friend correct? Show your computations. Then determine which policy would have cost Sarah less and by how much.
  4. The Kelleher family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a $500 deductible per person. If one family member has doctor and prescription medication expenses of $1,100, what amount would the insurance company pay?
  5. You are the wage earner in a “typical family,” with $40,000 gross annual income. Use the easy method to determine how much life insurance you should carry.

BUSN 380 DeVry Week 7 Problem Set 7

Problem Set 7

  1. Calculating Net Asset Value. Given the information below, calculate the net asset value for the Boston Equity mutual fund.
Total assets $225,000,000
Total liabilities 5,000,000
Total number of shares 4,400,000
  1. Calculating the Rate of Return of Investment Using Financial Leverage. Suppose Shaan invested just $10,000 of his own money and had a $90,000 mortgage with an interest rate of 8.5 percent. If after three years he sold the property for $120,000.
  1. What is his gross profit?
  2. What is his net profit/loss?
  3. What is the rate of return on investment?
  1. Shelly’s assets include money in the checking and savings accounts, investments in stocks and mutual funds, personal property, such as furniture, appliances, an automobile, coin collection and jewelry. Shelly calculates that her total assets are $108,800. Her current unpaid bills, including an auto loan, credit card balances, and taxes total $16,300. Calculate Shelly’s net worth.
  2. Barry and his wife Mary have accumulated over $4 million during their 45 years of marriage. They have three children and five grandchildren.
  • How much money can Barry and Mary gift to their children in 2008 without any gift tax liability?
  • How much money can Barry and Mary gift to their grandchildren?
  • What is the total amount of estate removed from Barry and Mary’s estate?
  1. Dave bought a rental property for $200,000 cash. One year later, he sold it for $240,000.
  • What was the return on his $200,000 investment?
  • Suppose Dave invested only $20,000 of his own money and borrowed $180,000 (interest free from his rich father). What was his return on investment?

BUSN 380 DeVry Week 3 Project 1

Job Search and Personal Budget

In this assignment, we are going to find a job (this could be your dream job or current job) and then use the Personal Budget spreadsheet located in Doc Sharing to fill out the spreadsheet based on your expected income and expenses. A grading rubric for Project 1 is available in Doc Sharing.

Instructions for Project #1

Using your income from your current job or using income from a future job that you are planning on having after graduating from college, construct a budget.

Searching for a job: Using a daily newspaper or an online search engine, find the monthly income/salary which will be used as your income in your personal budget.

Some useful job search websites: Monster (.monster.com/”>www.monster.com), Career Builder (.careerbuilder.com/”>www.careerbuilder.com), and Jobs (.jobs.com/”>www.jobs.com).

Additional information can be found at the United States Department of Labor, Bureau of Statistics (.bls.gov/oco/home.htm”>http://stats.bls.gov/oco/home.htm).

You may also take the research above to confirm and/or project what you should be earning if you intend to use your current job to complete this assignment.

Use the Personal Budget spreadsheet from Doc Sharing to enter your income from your current job or the income from the job that you are planning on having, then enter the rest of the details based on this personal income (expenses, spending, etc.).

Write a short paper (two page maximum, double spaced, APA format) on your job and budget; it should include the following as a minimum:

  • a job description;
  • reasons why you would like to have his job;
  • a salary; and
  • a discussion and explanation of how this dream job will or will not help you achieve your personal goals based on the outcome of your budget.

Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these .next.ecollege.com/default/launch.ed?ssoType=DVUHubSSO2&node=node/184″>step-by-step instructions or watch this .next.ecollege.com/default/launch.ed?ssoType=DVUHubSSO2&node=node/232″>Dropbox Tutorial.

See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

BUSN 380 DeVry Week 6 Project 2

Car Buying

In this assignment, we will learn how to buy a car and figure out whether it is priced at or below market value.

Instructions for Project #2

First, you need to decide on your budget, which is the maximum you can spend on a car, and that maximum number should take into consideration price, tax, registration, and fixing if needed.

Second, go to a website such as cars.com, and search for a car in within your budget constraint.

Third, go to a website such as the one for the Kelly Blue Book, and find out whether the car is at market value, overpriced, or underpriced.

Finally, write a two-page paper discussing your findings and issues to explain or discuss.

Explain your choice. Why did you select the car that you identified? What are the three different prices the Kelly Blue Book provides?

  • Based on Kelly Blue Book prices, is the car overpriced or underpriced?
  • Did you have any surprises, prior experience, feedback, thoughts, and so on?
  • Referring to the car that you selected, discuss the insurance decisions you will need to make.
  • What type of coverage will you need?
  • What is the minimum amount of coverage you will need (based on your state of residence) and what amount of coverage would you actually like to have?

Are there any actions you can take to reduce your premiums? Address these questions, taking into account your current budget and financial status.

BUSN 380 DeVry Week 5 You Decide

Scenario Summary

After a number of years of planning, you have made the decision to evaluate the potential purchase of a home. The goal of the assignment is to compare two homes based on demographics, and also to analyze a number of additional factors related to the home-buying process and ongoing possession.

Your Assignment

You will first need to research the housing market and compare the values of two similar homes in two different areas. The two homes must be extremely similar in structure size, land size, year built, and additions such as swimming pools or barns. Then, based upon your findings, you will select one of the homes to purchase, calculate a monthly payment on the mortgage note, compare this information with what you can potentially afford, and address additional questions related to home ownership.

KEY PLAYERS

.1em; font-weight: normal;”> ScenarioYour RoleKey PlayersAssignmentYou Decide

Scenario

After a number of years of planning, you have made the decision to evaluate the potential purchase of a home. The goal of the assignment is to compare two homes based upon on demographics, and to also analyze a number of additional factors related to the home buying process and ongoing possession.

Your Role

You will first need to research the housing market and compare the values of two similar homes in two different areas. The two homes must be extremely similar in structure size, land size, year built, and additions like a swimming pool or a barn. Then, based upon your findings, you will select one of the homes to purchase, calculate a monthly payment on the mortgage note, compare this information with what you can potentially afford, and address additional questions related to home ownership.

Key Players

Michael JosephReal Estate AgentBethany SmithMortgage LenderTimothy BaxterCurrent Homeowner/Seller Mary ThompsonCondominium Association, President

Assignment

Given the scenario, your role and the information provided by the key players involved, it is time for you to make a decision.

If you are finished reviewing this scenario, close this window and return to this week’s You Decide item, in your course window, to complete the activity for this scenario.

You can return and review this scenario again at any time.

YOU DECIDE Activity or Assignment

Assignment

House #1 House #2
  1. Go to the following website: .realtor.com/”>http://www.realtor.com/.
  2. Enter a ZIP code.
  3. Chose Homes for Sale.
  4. Enter your price range (the minimum and maximum amount you want to spend).
  5. Enter the specifications (number of bedrooms and number of baths).
  6. Hit Search.
  7. Find a home that you like or would consider.
  8. Go to the U.S. Census website: .census.gov/”>http://www.census.gov.
  9. Click on the American Factfinder tab on the left of the screen.
  10. Under the Fact Access to Information title, enter the ZIP code of the house you found.
  11. You will get lots of data on demographics like age, gender, family size, education, income, and crime rates.
  12. Find out the price per square foot for the house you found.
The goal now is to find a very similar house (age, lot size, square footage, number of rooms, and number of bathrooms).

Repeat Steps 1 through 12.

In Step 2, pick another ZIP code 20+ miles away from the first ZIP code you picked for the first house.

In Step 5, pick the same specification and choose a house that was built in the same year or so as the first house. Also, try your best to find a house that has the same lot size and square footage as the first house.

Construct a table showing a comparison of data (including location, square footage, total price, price per square foot, and specifications), for both houses and then write a 3–4-page paper detailing the following:

  1. What is the logic for choosing your two ZIP codes? Is the selection based upon work location, family location, good schools, and so on?
  2. What is the logic behind choosing the size and specifications of each house?
  3. Compare the total price of the two homes.
  4. Compare the price per square foot for each house.
  5. Compare the demographic data (referring to the location and ZIP code) of each house. Based upon these data, try to explain the similarities and differences in pricing for each home.
  6. Select the home that you will purchase and explain the reasoning behind your selection. Assume that at least a 20% down payment is required. How much money would you need to have saved? After the down payment, what would be the purchase price of the home?
  7. Assume the following:
  • Closing costs (including all potential loan origination, title, and closing fees) are $3,500.
  • You have been approved for a 30-year fixed-rate mortgage note at a rate of 5.0%. Calculate the monthly payment for this loan. (It is recommended that you show your calculation.)
  1. Using your textbook readings this week as a resource, and based upon your monthly gross income and current additional debt payments, perform the calculations below (it is recommended that you show your calculations).
  • Your affordable monthly mortgage payment (assume your lender uses a guideline of 33% for monthly gross income or 38% if you have other debt payment obligations)
  • Your affordable mortgage amount (meaning the amount that can be financed; assume the loan terms under #7b)
  • Your affordable home purchase price (assume a 20% down payment). Compare these calculations to the previous data under #6 and #7. What are your conclusions? Discuss your findings, including any surprises!

When purchasing a home, what additional considerations must you take into account? Discuss the parties that will be involved, what type of documentation will be required, home inspection requirements, any additional financing options that you would evaluate, and so on

Present a general summary regarding home ownership. What are the advantages and disadvantages of home ownership, and how does your personal choice fit into your overall personal financial plan?

Grading Rubric

Category Points Description
Home Research and Comparisons 20 A comparison of the two homes identified is presented in detail through the completion of the table and a discussion (#1–5)
Home Selection and Mortgage Payment Calculation 20 Home selection decision; calculation of the mortgage payment (# 6 and #7)
Home Affordability 15 Calculate, discuss, and compare home affordability (#8).
Home Purchasing Considerations 15 Discuss home purchasing considerations (#9).
Home Ownership Summary 20 Present a general summary related to home ownership (#10).
Formatting and Grammar 10 Points will be deducted for poor grammar, spelling, or writing style. Any external sources must be cited. References must be cited in two places: within the body of your paper and on a separate reference list. Please follow required APA guidelines, as well as guidelines regarding plagiarism.
Total 100 A quality paper will meet or exceed all of the above requirements.

BUSN 380 DeVry Week 1 Quiz Latest

  1. Question : (TCO 1) A(n) _____ summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities.
  • insurance prospectus
  • statement
  • budget
  • investment forecast
  • financial plan

Question 2. Question : (TCO 1) In financial planning, a major activity component involves the

  • allocation of current resources for spending.
  • evaluation of investment alternatives.
  • evaluation of one’s career.
  • selection of insurance coverage.
  • establishment of credit.

Question 3. Question : (TCO 1) Higher interest rates can be caused by

  • increased saving and investing by consumers.
  • an increase in the money supply.
  • a decrease in consumer borrowing.
  • lower government spending.
  • a lower money supply.

Question 4. Question : (TCO 1) The _____ refers to stages that an individual goes through based on age, financial needs, and family situation.

  • financial planning process
  • financial cycle
  • adult life cycle
  • personal economic cycle
  • tax planning process

Question 5. Question : (TCO 1) The future value of an account in which $2,000 is deposited each year for 5 years, and which earns 4%, is approximately _____ after 5 years.

  • $2,000
  • $2,400
  • $10,000
  • $400
  • $10,800

Question 6. Question : (TCO 1) Higher employment levels can be attributed to

  • lower consumer prices.
  • reduced employment levels.
  • lower interest rates.
  • higher employment levels.
  • increased consumer spending.

Question 7. Question : (TCO 1) When it comes to the financial planning process, the first step is to

  • develop financial goals.
  • implement the financial plan.
  • evaluate and revise your actions.
  • analyze your current personal and financial situation.
  • create a financial plan of action.

Question 8. Question : (TCO 1) The simple calculation of interest can be performed by multiplying the amount in a savings account by the

  • annual interest rate.
  • annual interest rate and the time period.
  • number of months in a year.
  • time period and number of months.
  • time period.

Question 9. Question : (TCO 1) Brad Opper has a goal of “saving $50 a month for vacation.” Brad’s goal lacks

  • a realistic perspective.
  • specific terms.
  • the type of action to be taken.
  • a purpose.
  • a time frame.

Question 10. Question : (TCO 1) _____ risk refers to the changing cost of money.

  • Monetary
  • Inflation
  • Economic
  • Personal
  • Interest rate

Question 11. Question : (TCO 1) You want to determine the current value of an annuity that pays $350 a month for the next 5 years. What type of calculation would provide you with this value?

  • Future value of a single amount
  • Simple interest
  • Present value of a single amount
  • Future value of a series of deposits
  • Present value of a series of deposits

Question 12. Question : (TCO 1) A commitment to a profession that requires continued training and offers a clear path for occupational growth is a(n)

  • apprenticeship.
  • internship
  • employment.
  • cooperative employment experience.
  • career.

Question 13. Question : (TCO 1) In order to evaluate one’s current financial position (including net worth), the best tool that can be used is a

  • budget.
  • cash flow statement.
  • bank statement.
  • time-value-of-money report.
  • balance sheet.

Question 14. Question : (TCO 1) A _____ résumé would best be used by an employee who has worked in many fields and has a variety of skills in a variety of work-related categories.

  • targeted
  • goal-oriented
  • chronological
  • functional
  • career change

Question 15. Question : (TCO 1) A _____ résumé is designed to obtain a specific job.

  • functional
  • chronological
  • goal-oriented
  • targeted
  • data

Question 16. Question : (TCO 1) Which of the following would be a competency commonly associated with successful people?

  • An ability to work well with others in a variety of settings
  • A desire to do tasks better than they have to be done
  • An ability to solve problems creatively in team settings
  • Well-developed written and oral communication skills
  • All of the above

Question 17. Question : (TCO 1) Cash and other items that are easily converted to cash are referred to as _____.

  • quick assets
  • working assets
  • liquid assets
  • investments
  • solvent items

Question 18. Question : (TCO 1) A savings amount of $3,500 on deposit for 4 years at 4% interest (compounded annually) would earn about

  • $ 650.
  • $ 600.
  • $560.
  • $140.
  • $350.

Question 19. Question : (TCO 1) Solvency can be assessed through the analysis of the following financial document.

  • Cash flow statement
  • Debt consolidation statement
  • Personal income statement
  • Credit report
  • The balance sheet

Question 20. Question : (TCO 1) Which of the following situations best represents an individual facing insolvency?

  • Assets $30,000; liabilities $37,000
  • Assets $78,000; net worth $22,000
  • Liabilities $45,000; net worth $6,000
  • Assets $56,000; annual expenses $60,000
  • Annual cash inflows $45,000; liabilities $50,000

BUSN 380 DeVry Week 2 Quiz Latest

  1. Question : (TCO 2)This type of tax is calculated based upon the value of land and buildings.
  • Personal
  • Real estate
  • Direct
  • Proportional
  • Regressive

Question 2. Question : (TCO 2) Interest earnings of $2,400 from a taxable investment for a person in a 28% tax bracket would result in after-tax earnings of

  • $672.
  • $1,728.
  • $2,400.
  • $3,333.
  • $8,571.

Question 3. Question : (TCO 2) _____ can reduce taxable income.

  • Portfolio income
  • Tax credits
  • Exclusions
  • Passive income
  • Earned income

Question 4. Question : (TCO 2) You have invested in the stock market and receive dividends. The dividend income must be reported as _____ income.

  • passive
  • earned
  • investment
  • capital gain
  • excluded

Question 5. Question : (TCO 2) George Washburn had earnings from his salary of $44,000, interest on savings of $800, a contribution to a traditional individual retirement account of $2,000, and dividends from mutual funds of $600. George’s adjusted income (AGI) would be

  • $43,400.
  • $44,000.
  • $45,400.
  • $42,000.
  • $42,800.

Question 6. Question : (TCO 2) _____ can be calculated as a result of various items being subtracted from gross income, such as individual retirement account contributions and alimony payments.

  • Adjusted gross income
  • Taxable income
  • Earned income
  • Passive income
  • Total exclusions

Question 7. Question : (TCO 2) Expenses that a taxpayer is allowed to deduct from adjusted gross income are called _____.

  • exemptions
  • exclusions
  • itemized deductions
  • tax credits
  • passive income

Question 8. Question : (TCO 2) Taxes owed can be reduced through _____.

  • the standard deduction
  • a tax credit
  • an itemized deduction
  • an exclusion
  • an exemption

Question 9. Question : (TCO 2) In order for a dependent to qualify as an exemption, he or she must

  • be married.
  • receive more than one half of his or her support from the taxpayer.
  • be under age 16.
  • be registered in school.
  • be a relative.

Question 10. Question : (TCO 2) People who _____ must make estimated quarterly tax payments.

  • are employed in a foreign country.
  • receive dividends.
  • work for the government.
  • do not have adequate amounts withheld from income.

Question 11. Question : (TCO 2) A(n) _____ is an all-purpose account that provides several services.

  • NOW account
  • asset management account
  • EFT account
  • mutual fund
  • money market account

Question 12. Question : (TCO 2) An example of a _____ deposit is a checking account.

  • common
  • time
  • current
  • loan
  • demand

Question 13. Question : (TCO 2) An example of a place where one will encounter high fees for loans when borrowing money is a _____.

  • credit union
  • savings and loan association
  • pawnshop
  • commercial bank
  • mutual savings bank

Question 14. Question : (TCO 2) _____ are the major products offered by investment companies.

  • Interest-bearing checking accounts
  • Variable-rate loans
  • Credit card accounts
  • Savings bonds
  • Mutual funds

Question 15. Question : (TCO 2) One of the characteristics of a certificate of deposit is that it can have

  • high interest-rate risk.
  • low safety for savers.
  • limited liquidity.
  • a variable rate of return.
  • no minimum deposit amount.

Question 16. Question : (TCO 2) On a savings account, the rate of return can also be referred to as

  • liquidity.
  • compounding.
  • yield.
  • insolvency.
  • asset management.

Question 17. Question : (TCO 2) A savings account in which interest is compounded _____ would have the highest effective yield.

  • daily
  • annually
  • semiannually
  • monthly
  • weekly

Question 18. Question : (TCO 2) At times, funds deposited in an account may be restricted by_____.

  • a holding period
  • outstanding checks
  • interest earned
  • service charges
  • electronic banking

Question 19. Question : (TCO 2) Service fees would be _____ in the bank reconciliation process.

  • added to the bank statement balance
  • subtracted from the bank statement balance
  • added to the checkbook balance
  • subtracted from the checkbook balance

Question 20. Question : (TCO 2) When an individual borrows money to purchase a new home, he or she will be charged a _____.

  • prime rate
  • discount rate
  • mortgage rate
  • Treasury bond rate
  • corporate bond

BUSN 380 DeVry Week 3 Quiz Latest

  1. Question : (TCO 3)Examples of _____ include automobile and installment loans for purchasing furniture or appliances.
  • a line of credit
  • a credit card loan
  • open-end credit
  • closed-end credit
  • convenience credit

Question 2. Question : (TCO 3) The maximum percentage of your net income that should be spent on credit purchases is recommended to be _____.

  • 10%
  • 20%
  • 30%
  • 40%
  • 50%

Question 3. Question : (TCO 3) One of the concerns and risks associated with cosigning is that

  • you are not being asked to guarantee the debt.
  • it is not your legal responsibility to pay the debt.
  • you’ll have to pay up to the full amount of the debt if the borrower does not pay.
  • the creditor must first try to collect from the borrower.
  • the creditor cannot garnish your wages.

Question 4. Question : (TCO 3) Dividing monthly debt payments (not including house payments) by net monthly income will allow you to calculate your _____.

  • net-worth-to-debt ratio
  • debt-payments-to-income ratio
  • liability status
  • credit capacity status
  • income-to-liability ratio

Question 5. Question : (TCO 3) In determining your credit capacity, you first provide for basic necessities, such as

  • furniture.
  • home furnishings.
  • mortgage or rent.
  • automobiles.
  • durable goods.

Question 6. Question : (TCO 3) If you ask to review your file within _____ days of being notified of a denial based upon a credit report, the credit bureau cannot charge you a disclosure fee.

  • 10
  • 60
  • 30
  • 40
  • 20

Question 7. Question : (TCO 3) If a bank needs to examine the value of a specific asset when you are applying for a loan, this process refers to which aspect of the five Cs of lending?

  • Character
  • Capacity
  • Collateral
  • Capital
  • Conditions

Question 8. Question : (TCO 3) When reviewing your credit file, if you find that there is information that is incorrect, then

  • there are legal remedies available to you.
  • you have no legal remedies.
  • credit bureaus are not required to change it.
  • you can’t really do much about it.
  • don’t worry much, because you will still get the credit.

Question 9. Question : (TCO 3) All of the following reasons are reasonable situations when you would decide to use credit except

  • borrowing for a stay in a hospital because of appendicitis.
  • borrowing to pay for your expensive dinner and movie every week.
  • borrowing to buy a printer for your home office now because you know it will be twice as expensive in 2 years.
  • borrowing to purchase a car so that you can go to work full time.

Question 10. Question : (TCO 3) Mary Jones has obtained a loan that must be paid over the next 12 months and she will use this money for a vacation. What type of credit is being used?

  • Installment sales credit
  • Incremental credit
  • Single lump sum credit
  • Revolving credit
  • Installment cash credit

Question 11. Question : (TCO 3) By evaluating your credit options, you can do all of the following except

  • reduce your finance charges.
  • reconsider your decision to borrow money.
  • discover a less expensive type of loan.
  • find a lender that charges a lower rate.
  • purchase goods and services without specific limitations.

Question 12. Question : (TCO 3) While collateralized loans may provide lower interest rates, these loans have a disadvantage because

  • the loan must be repaid in a short period of time.
  • you ruin your credit rating.
  • the loan is difficult to obtain.
  • commercial banks do not make such loans.
  • the assets used as collateral are tied up until the loan has been repaid.

Question 13. Question : (TCO 3) Referring to trends in credit union membership, it can be observed that membership has been

  • restricted by the Tax Reform Act of 1986.
  • declining gradually.
  • static.
  • growing steadily.
  • restricted by state laws.

Question 14. Question : (TCO 3) Which one of the following is a signal of a potential debt problem?

  • Paying the maximum balance due each month
  • Borrowing money to pay old debts
  • Using savings to pay for major purchases
  • Receiving notice of prompt payment from creditors
  • Occasionally working overtime and moonlighting

Question 15. Question : (TCO 3) Allison Smith starts the month with a balance of $1,100 on her credit card. On the 10th day of the month, she purchases $200 in clothes with her credit card. On the 15th day of the month, she makes a payment on her credit card of $500. The average daily balance for the month including the new purchase is $883. The average daily balance for the month excluding the new purchase is $750. Allison’s interest rate is 1.5% for the month. Allison’s bank calculates the finance charge on the credit card by using the adjusted balance method. What would Allison’s finance charges be for the month?

  • $7.50
  • $9.00
  • $11.25
  • $13.25
  • $16.50

Question 16. Question : (TCO 3) Jerry Dean starts the month with a balance of $1,500 on his credit card. On the 10th day of the month, he purchases $200 in clothes with his credit card. On the 15th day of the month, he makes a payment on his credit card of $500. The average daily balance for the month including the new purchase is $883. The average daily balance for the month excluding the new purchase is $750. Jerry’s interest rate is 1.5% for the month. Jerry’s bank calculates the finance charge on the credit card by using the previous balance method. What would Jerry’s finance charges be for the month?

  • $7.50
  • $13.25
  • $15.00
  • $22.50
  • $18.00

Question 17. Question : (TCO 3) If Jeff rushes to purchase a home by obtaining an interest-only loan, and the reason why he wants a home is because he wants to have a house just like the one that his parents had when he was a teenager, this is an example of which of the following?

  • Misunderstanding or lack of communication
  • The use of money to punish
  • Overindulgence of children
  • Keeping up with the Joneses
  • The expectation of instant comfort

Question 18. Question : (TCO 3) Steve has three children and has purchased each of them his or her own TV that is placed in his or her respective room. Which reason for indebtedness is this an example of?

  • Misunderstanding or lack of communication
  • Overindulgence of children
  • The expectation of instant comfort
  • Keeping up with the Joneses
  • The use of money to punish

Question 19. Question : (TCO 3) _____ families rely heaviest on student loans to finance college.

  • Low-income
  • Middle-income
  • High-income
  • Large Small

Question 20. Question : (TCO 3) If Tracy Sears borrows $1,250 for 1 year with an APR of 9% with no service fees, what is her total cost of credit?

  • $125
  • $112.50
  • $7.50
  • $9.38
  • $0

BUSN 380 DeVry Week 4 Quiz Latest

  1. Question : (TCO 5)Which of the following statements is false?
  • No one is going to make you save the money; you need to start a program.
  • To be useful, investment objectives must be very specific.
  • Investment goals can be different for each individual.
  • Because investment objectives deal with the future, it is useful to plan more than 5 years in the future.
  • A long-term investment objective involves a time period of 2 years or less.

Question 2. Question : (TCO 5) If an investment objective is considered to be long term, then this means the goal should be achieved in what time frame?

  • Less than 2 years
  • In 2–5 years
  • More than 5 years
  • Less than 1 year
  • None of the above

Question 3. Question : (TCO 5) You currently hold a $1,000 corporate bond; however, if interest rates in the overall economy decrease, which of the following is most likely to be the market value of this bond?

  • The bond is worthless.
  • $1,000
  • $900
  • $1,100
  • It is impossible to determine whether the bond’s value will increase or decrease.

Question 4. Question : (TCO 5) Which of the following individuals should have the highest tolerance for risk?

  • Joan Cummings, who is a single mother with two small children
  • Darren Carter, who works for American Airlines and is worried that he is going to be laid off soon
  • Barry Parks, who is an investment banker and earns over $200,000 per year
  • Michael Clark, who is 74 years old and been retired for 6 years
  • Fred Funderbunk, who delivers pizzas and makes about $15,000 per year

Question 5. Question : (TCO 5) Mary Ann recently received a $20,000 gift from her uncle and is considering investing in stocks, because she knows that historically they have earned an approximately 10–12% rate of return over the last few years. Referring to aspects of investing, Mary Ann is most concerned about which of the following?

  • Risk
  • Return
  • Diversification
  • Liquidity
  • Income

Question 6. Question : (TCO 5) A $1,000 corporate bond pays 7.5% a year. What is the annual interest you will receive?

  • $1,075
  • $7.50
  • $0.75
  • $75.00
  • $0

Question 7. Question : (TCO 5) _____ risk occurs when an investment does not keep up with increasing price levels in our economy.

  • Market
  • Interest
  • Inflation
  • Business failure
  • Current

Question 8. Question : (TCO 5) John Farmer recently received a legal form from the company where he owns stocks that list the issues to be decided at the annual stockholders’ meeting. The item asks that he signs something that allows