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Math 2 discussions What is the purpose behind using a Serial or Real Rate of Return when calculating client financial needs? When calculating the after
Math 2 discussions What is the purpose behind using a Serial or Real Rate of Return when calculating client financial needs? When calculating the after tax rate of return on an investment that is subject to both federal and state income tax, why is it considered improper to simply add the two tax rates together? What is the "default" mode for computing most TVM calculations? When is the alternate mode used and why? Why is the geometric mean return preferred over the arithmetic mean return when comparing investment performance? What is meant by a "weighted" average rate of return when computing returns for a portfolio of securities? A client has been making mortgage payments over the past 4 years on a 25 year loan. She decides to refinance the outstanding principal balance of the loan at the same interest rate over a new 25 year term without drawing against the current equity in her home. Will her new mortgage payment be higher, lower or the same? Why? I have a two year old granddaughter who will be starting college in 16 years. If I want to save annually for her college education so that all four years are fully paid when she begins college, which variable will I solve for once I determine the total cost of the four years in 2031 dollars? Which interest rate will I discount at: inflation rate, rate of return, or the serial rate? Why
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