- Purpose of Financial Instituters
B. Save $
-Savings account
-Checking account
-CD
Money market
C. Loan $
- Interest- Price paid for the use of borrowed money
- Principal- Amount of money you borrow
- Types of Financial intermediaries
- Commercial banks
- Savings and loans
- Credit union
- Mutual fund companies
- Finance
- The Financial System
- Financial Assets- a paper claim that entitles the buyer future to future income from the seller
- Physical Assets- a claim on a tangible object
- Liability- a requirement to pay money in the future
- 5 Major Financial Assets
- Loans
- Stocks
- Bonds
- Loan bake securities
- Bank deposit interest rate and inflation
- The Time Value of Money
- Future Value v Present Value
-FV= Future value, PV=Present value, i= Nominal interest rate, t= Time
- Future Value- If you invest ( Lend money to someone ) it will compound (grow) according to the following equation. FV= PV(1+i)^N
- Present Value- The amount of money i need to invest now in order to get some amount in the future PV= FV/(1+i)^N
- Simple interest- V=(1+r)^n *P
- Compound Interest- V=(1+r/k)^nk*P
When I was applying for a loan to purchase my building as a small business owner in a tough situation, conventional banks said they could not help me. Mr Pedro, a loan officer, sat down with me, heard my situation and decided that I was worth taking a chance on. Here we are 3 years later and I have just renewed my loan for another 7 years. I couldn’t have purchased my building without the help of Mr Pedro and will be forever indebted to them for giving me a chance when no one else would."
ReplyDeleteI will recommend you to contact a loan officer Mr Pedro on the information below if you need any financial assistance.
Email & Chat: +1 863 231 0632 pedroloanss@gmail.com