Explain how compound interest differs from simple interest.

:How broker and dealer make the market more efficient as compared to unavailability of broker.

Question No 2: How trade credit (Accounts payable) differ from accrued expenses?

Question No 3:Before lending the lender will screen the mortgage from the borrower. What is the need to do so? Secondly how borrower and lender suffer in recession.

Question No 4:why would anyone make an investment that would pay them something for delaying consumption. Relate it with any principle of finance.

Question No 5: As harry potter and order of the phoenix are two successful movies. These two movie mostly produce cash on different time(daily, weekly, monthly) but it did not make any profit. From the understanding of financial principle, is it successful? Relate it with a finance principle with justification.

Question No 6:Make a comparison of two corporation Dunking corporation and AMA"s corporation having the different financial Ratios. Review your financial Ratios concepts.

Ratios Company Dunking, Company Ama

Current Ratio 2.4, 2.7

Days in receivables 25 Days, 13 Days

Days in inventory 74 days, 95 days

Total Assets Turnover 1.69 X, 1.45 X

Operating profit margin 13.5 percent 9.6 percent

Debt Ratio 78 percent, 44 percent

ROE 11.7 Percent 14.1 percent

a) With respect to the Days in receivables which corporation is best. Make a comparison.

b) How operating profit margin is better in case of Dunking corporation.

c) As a shareholder and investor how u interpret the debt ratio.

d) If you are required to discuss about the inventory management which ratio will be more relevant? Either Dunking is more better inventory management system or Amma. Explain it by any one of the above given ratio.

Question No 7:Amma has an investment account that shows a balance of $2,523.50 on 2000. She wants to make five withdrawals of $700 each on December 31 of years 2000 through 2005. Ama wants the account to have a balance of $0 on December 31, 2005. In order to proceed with her plans, what annual interest rate does Amma need on her account, assuming that annual interest earnings are added to the principal on December 31 of each year?

a) Is it a simple question or annuity? How can it is judged?

b) If it is an annuity then state its type of annuity with explanation