Assignment 2: LASA 1—The Time Value of Money

By Wednesday, February 22, 2017 submit a 4-5 page report based on the following problem:

Mary has been working for a university for almost 25 years and is now approaching retirement. She wants to address several financial issues before her retirement and has asked you to help her resolve the situations below. Her assignment to you is to provide a 4-5 page report, addressing each of the following issues separately. You are to show all your calculations and provide a detailed explanation for each issue.

Issue A:

For the last 19 years, Mary has been depositing $500 in her savings account , which has earned 5% per year, compounded annually and is expected to continue paying that amount. Mary will make one more $500 deposit one year from today. If Mary closes the account right after she makes the last deposit, how much will this account be worth at that time?

Issue B:

Mary has been working at the university for 25 years, with an excellent record of service. As a result, the board wants to reward her with a bonus to her retirement package. They are offering her $75,000 a year for 20 years, starting one year from her retirement date and each year for 19 years after that date. Mary would prefer a one-time payment the day after she retires. What would this amount be if the appropriate interest rate is 7%?

Issue C:

Mary’sreplacement is unexpectedly hired away by another school, and Mary is asked to stay in her position for another three years. The board assumes the bonus should stay the same, but Mary knows the present value of her bonus will change. What would be the present value of her deferred annuity?

Issue D:

Mary wants to help pay for her granddaughter Beth’s education. She has decided to pay for half of the tuition costs at State University, which are now $11,000 per year. Tuition is expected to increase at a rate of 7% per year into the foreseeable future. Beth just had her 12th birthday. Beth plans to start college on her 18th birthday and finish in four years. Mary will make a deposit today and continue making deposits each year until Beth starts college. The account will earn 4% interest, compounded annually. How much must Mary’s deposits be each year in order to pay half of Beth’s tuition at the beginning of each school each year?

Turn in your completed work to the M3: Assignment 2 Dropbox by Wednesday, February 22, 2017.

Assignment 2 Grading Criteria
Maximum Points
Calculated the compounded interest over 20 years and evaluated the value of the savings account upon closing. (CO 1)
Calculated the bonus payout over 20 years vs. a one time payout with interest and distinguished which bonus option would be better for the client. (CO 1)
Calculated the present value of the bonus and analyzed the difference in bonus for the client. (CO 2)
Analyzed the tuition costs for the client and determined what the future costs will be and determined how these funds can be accumulated over time. (CO 4)
Written Components: Organization, usage and mechanics, APA elements, style


Taj Mahal

Taj Mahal – instruction


Analyzing an artwork may be new to you however, after digging into this essay you will see the connection it has to other disciplines such as a poem or piece of literature that you may have already analyzed. Your previous experience will serve you in thinking and writing like an art historian. You must still make an argument about something, but in this case you will use art (instead of, say, dialogue from a play) to build and defend your argument. You have also been building your art vocabulary in the previous essays for this course such as the compare and contrast. This vocabulary is just like the vocabulary you would learn when dealing with any technical subject. Learning how to analyze and research a work of art takes time, practice and a working knowledge of the visual arts vocabulary. In addition to using art vocabulary to formally analyze a work, I am asking you to also look beyond the image and through the object toward theoretical, historical, or social contexts of the object, artist, or time period. I would like you to write about how the formal or stylistic qualities of the object reflect or affect the time in which they were made. More specifically look at the object’s relationship to ideas about gender, class, artistic creation, culture, or politics associated with that time. As you can see, this assignment leaves you a fair amount of latitude in finding and pursuing a topic. Regardless of the theoretical perspectives you use or apply, be sure that your essay contains a strong argument. Here is your assignment:

How to structure your final essay.

  • Must be written in essay format.
  • 10-12pt font
  • Times New Roman or Arial
  • All sources must be cited, both within the paper and on a works cited page
  • Though I am not assigning an exact page requirement for this, a successful essay will be between approx. 3-5 pages. Keep your discussion on point and concise. Avoid filler and repetition in your writing.
  • Give a thorough formal and theoretical analysis of the piece.



Principles of Financial Plan – Week6 Quiz 5

Principles of Financial Plan – Week6 Quiz 5

Week 6 – Quiz 5


Top of Form

Bottom of Form


Question 1. 1. During your recent meeting with Ron, a new client, you discussed the concept of risk. You defined several terms for Ron. Which of the following terms is defined as: the possibility of loss, but no possibility of gain? (Points : 0.1)

Pure Risk.


Risk Transfer.



Question 2. 2. Which of the following would not be considered a personal risk? (Points : 0.1)

Becoming disabled due to a car accident.

Injuring a passenger in your vehicle during an auto accident that was your fault.

Dying at age 42 given a normal life expectancy of age 80.

Being diagnosed with a curable form of cancer.


Question 3. 3. You recently met with your client, Don, age 40. Don is widowed and has one dependent child. During your meeting with him you discussed the concept of risk management. Which of the following statements regarding the ways to manage risk is incorrect? (Points : 0.1)

The selling of Don’s Jet Ski is an example of risk reduction.

Not purchasing life insurance is an example of risk retention.

Purchasing a warranty is an example of risk transfer.

Insurance is not necessary for every risk of financial loss.


Question 4. 4. If a risk has a high frequency of occurrence and a high severity, you should: (Points : 0.1)

Transfer the risk.

Retain the risk.

Reduce the risk.

Avoid the risk.


Question 5. 5. Ginny and Max own a rental home on the Gulf Coast. They insured their property with their local insurance company. The policy provides protection against losses caused by perils that are specifically listed as covered in the policy. What type of policy do they have? (Points : 0.1)

All-risk policy.

Open-perils policy.

Named-perils policy.

Identified-perils policy.


Question 6. 6. Jennifer had a very bad year. She wrecked her car in January when she ran a red light (because she could not see properly having left her contacts at home) and crashed into another car completely destroying both cars. The insurance company was very nice to her and she purchased a new car with the insurance proceeds. Jennifer decided that since she had insurance, it really did not matter if she took proper care of her new car because she could always get a new one. Jennifer got in the habit of leaving her new car unlocked and it was stolen. After Jennifer bought another car she decided that she really liked the insurance adjuster and wanted to see him again, so one day she purposefully set her car on fire. In her carelessness, she also caught her hand on fire. Jennifer was depressed over her circumstances and decided she didn’t want to go back to work. She filed a falsified disability claim for the loss of use of her hand (even though she could still use her hand). Which of the following statements is true? (Points : 0.1)

Driving with poor eyesight is not a hazard.

Leaving the car unlocked is a morale hazard.

Burning the car on purpose is a morale hazard.

Filing a false disability claim is a morale hazard.


Question 7. 7. Which of the following is most likely to be an insurable risk? (Points : 0.1)

Intentionally burning down your house.


Gambling losses.

An automobile accident due to negligence.


Question 8. 8. You recently met with your client, Tripp, to discuss his insurance policies. Tripp was reading a book on contracts and wanted to know how his insurance contract related to the material he was reading and to his circumstances. During your conversation, Tripp made several statements to clarify that he understood insurance. Which of the following statements would you have told him was incorrect? (Points : 0.1)

An insurance contract is unilateral, where both parties agree to a legally enforceable promise.

The insurance contract is aleatory, where unequal monetary values are exchanged.

An insurance contract is based on the principal of indemnity, where the insured cannot make a profit from a claim on insurance.

An insurance contract is a contract of adhesion, where the insured accepts the contract as written and is unable to negotiate the terms of the contract.


Question 9. 9. Erin purchased a life insurance policy on her own life. Her husband Mike is the beneficiary of the policy. Which of the following is not a necessary legal element of the contract? (Points : 0.1)

Offer and acceptance.

Legal competency of all parties.


Listed beneficiary.


Question 10. 10. Joe wants to purchase a life insurance policy on his own life. He is interested in learning about the various approaches to determine the amount needed. Which of the following is not true regarding the three most common approaches? (Points : 0.1)

The human life value method estimates the present value of income generated over a person’s work life expectancy and is then adjusted for the expected consumption of the survivors.

The financial needs method evaluates the income replacement and lump-sum needs of the survivors after the insured dies.

The capitalization of earnings method determines need by dividing the client’s gross income by the riskless rate of return.

In practice a financial planner would utilize all three methods and then determine the client’s needs based on a combination of factors including affordability.

Saudi Arabian local business, organization, or place of employment

Within the context of Saudi Arabian local business, organization, or place of employment, apply two (2) of the decision-making techniques presented this week to a decision that you will make now or in the near future. After doing so, compare the possible results of the two techniques/tools of choice. Also, assess which would be most effective. Finally, describe in detail how you used these tools to solve a problem within your organization, business, or place of employment.


Your paper should be 5-7 pages long, double-spaced, and formatted according to standards of APA style guidelines. Use at least three peer-reviewed scholarly sources and information from your module to support your decision.

strategic objectives summary

Write a 1,050- to 1,400-word strategic objectives summary. Include your balanced scorecard and its impact on all stakeholders, and the communication plan.

Identify key trends, assumptions, and risks in the context of your final business model.

Develop the strategic objectives for your new division of the existing business in a balanced scorecard format in the context of key trends, assumptions, and risks. The strategic objectives are measures of attaining your vision and mission. As you develop them, consider the vision, mission, and values for your business and the outcomes of your SWOT analysis and supply chain analysis.

Consider the following four quadrants of the balanced scorecard when developing your strategic objectives:

  • Shareholder Value or Financial Perspective, which includes strategic objectives in areas such as:
    • Market share
    • Revenues and costs
    • Profitability
    • Competitive position
  • Customer Value Perspective, which includes strategic objectives in areas such as:
    • Customer retention or turnover
    • Customer satisfaction
    • Customer value
  • Process or Internal Operations Perspective, which includes strategic objectives in areas such as:
    • Measure of process performance
    • Productivity or productivity improvement
    • Operations metrics
    • Impact of change on the organization
  • Learning and Growth (Employee) Perspective, which includes strategic objectives in areas such as:
    • Employee satisfaction
    • Employee turnover or retention
    • Level of organizational capability
    • Nature of organizational culture or climate
    • Technological innovation

Evaluate potential alternatives to the issues and/or opportunities identified in the SWOT Analysis paper and table you completed in Week 3.

Create at least three strategic objectives for each of the four balanced scorecard areas.  Base your solutions on a ranking of alternative solutions that includes the following:

  • Identify potential risks and mitigation plans
  • Analyze a stakeholder and include mitigation and contingency strategies.
  • Incorporate ethical implications

Develop a metric and target for each strategic objective using a balanced scorecard format.

  • Example: a strategic objective in the shareholder or financial perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, “The percentage of increase in market share.” The target is the specific number to be achieved in a particular time period. The target for the metric of “Increase market share” could be “Increase market share by 2% for each of the next 3 years” of an increase of 2% per year for 3 years.)

Outline a brief communication plan discussing how you will communicate the company’s strategic objectives that includes the following:

  • Define the purpose.
  • Define the audience.
  • Identify the channel(s) of communication and why you selected that channel.

Format paper consistent with APA guidelines.