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Question 1
You have just graduated, are dead broke, but would still like to buy a new car so that you can
show it off on Instagram. Your rich Aunt Amy, who is a retired investment banker at the age
of 35 because she knew better, is willing to lend you the money to buy the car, as long as you
promise to pay her back in four years. You propose to pay her the rate of interest she would
otherwise get by putting the money in the bank, which has deposit and loan rates of 2% and
6%, respectively. Based on your projected income and living expenses, you anticipate that
you will be able to pay her \$30,000, \$40,000, \$45,000, and \$50,000 at the end of each of the
next four years, respectively.
(a) If your aunt accepted your proposal, how much would she be willing to lend you
today?
(4 marks)
(b) How much would your aunt have in four (4) years if she chooses not to lend you the
money?
(3 marks)
(c) How much would your aunt have in four (4) years if she chooses to lend you the
money?
(5 marks)
(d) Based on your calculations in parts (b) and (c), you believe your aunt should be
indifferent between lending you the money or putting the money in the bank. Discuss
whether she would agree with your assessment.
(8 marks)
(e) Suppose your aunt proposes to make you indifferent between borrowing from her or
borrowing from the bank instead. How much would she be willing to lend you today?
(4 marks)
FIN304 Tutor-Marked Assignment
SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 3 of 4
(f) You and your aunt eventually agree to an interest rate of 4%. Explain whether you
win, whether your aunt wins, and how such an outcome can be possible.
(9 marks)
Question 2
You would like to purchase a private condominium that costs \$1.2 million, and you are
shopping around for a housing loan. As this is your first housing loan, the Monetary
Authority of Singapore (MAS) allows you to have a loan-to-value (LTV) limit of 75%. Also,
you are required to maintain a total debt servicing ratio (TDSR) of 60%. The best deal you
could find is by the Digital Bank of Singapore (DBS), which offers a fixed-rate loan of 1.8%
per annum and makes a net interest margin of 0.6% per annum. You would like to take out a
loan for 35 years and do not have any other outstanding debt.
(a) How much must your gross monthly income at least be in order to afford this
condominium?
(8 marks)
(b) Suppose you are able to take out this loan. Without constructing a loan amortisation
schedule, calculate the total amount of interest you would pay over the life of the
loan.
(4 marks)
(c) Is your calculation in part (b) technically appropriate? If yes, explain why. If not,
come up with an alternative measure of the dollar cost of borrowing that is technically
appropriate and interpret that measure
(10 marks)
While you are browsing the bank’s website, you find that DBS quotes an interest rate
of 1.6% per annum on a car loan. Incidentally, you are thinking about buying that
cheapest possible Mercedes A-Class Saloon, which costs \$180,000. MAS rules
restrict financing to 60% of this car for a maximum loan tenure of 7 years which you
plan to max out. The terms of the loan contract states that monthly payments are
computed using the following formula:
(d) Assess whether the housing loan or the car loan is more expensive by comparing
appropriate annual rates.
(10 marks)
(e) If the conclusion reached in part (d) is different from the conclusion reached through a
comparison of rates quoted by DBS, explain why. Also, explain why the rate of one
loan type should be higher than the rate of another loan type.
(10 marks)
FIN304 Tutor-Marked Assignment
SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 4 of 4
Question 3
Your friend’s father just turned 55 and is thinking of joining CPF LIFE. He tells you that if
he sets aside the Basic Retirement Sum (BRS) of \$90,500 today, he can expect an
approximate monthly payout from age 65 of \$780 for as long as he shall live. Alternatively, if
he sets aside the Full Retirement Sum (FRS) of \$181,000 today, he can expect an
approximate monthly payout from age 65 of \$1,440. Assume that the interest rate is 4% and
that compounding occurs monthly.
(a) What is the breakeven age for the BRS plan?
(8 marks)
(b) What is the breakeven age for the FRS plan?
(8 marks)
(c) At what life expectancy would your friend’s father be indifferent between the two (2)
plans? Which plan should he choose given male life expectancy in Singapore?

Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.

Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.

This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.

To be inviting and polite is indistinguishable, and politeness requires an insightful and amicable activity against others. Axioms are notable that gracious “pay of graciousness is the main thing to win everything”. Correspondence staff ought to consistently remember this. The accompanying standards may assist with improving courtesy:Preliminary considering correspondence with family All glad families have the mystery of progress. This achievement originates from a strong establishment of closeness and closeness. Indeed, through private correspondence these cozy family connections become all the more intently. Correspondence is the foundation of different affiliations, building solid partners of obedient devotion, improving family way of life, and assisting with accomplishing satisfaction (Gosche, p. 1). In any case, so as to keep up an amicable relationship, a few families experienced tumultuous encounters. Correspondence in the family is an intricate and alluring marvel. Correspondence between families isn’t restricted to single messages between families or verbal correspondence.

It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.

Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>