Interest and the Time Value of Money
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Deliverable Length: Power Point Presentation 8-10 slides
Details: Your advertising team has been given an ad campaign for a financial institution to introduce various financial schemes education for the public. You have been asked to put together a presentation for the financial institution to view before the ad campaign is implemented. Create a professional presentation that shows examples of the following ad campaigns and calculations for each part:
1. An individual has charged $13,573 on his or her credit card at an annual interest rate of 19.9% compounded monthly. Explain to him or her the difficulties that he or she can foresee in future years of interest getting out of control. Give 5-year and 10-year debt projections based on the individual paying the minimum $200 monthly payment.
2. An organization wishes to invest with a particular savings and loan institution. The organization has been given a choice of options for investing. The options are as follows:
a. 8.4% compounded monthly
b. 8.6% compounded quarterly
c. 8.7% compounded semiannually
d. 8.8% compounded annually
Explain to members of the organization with specific examples so that they understand their best option.
Prepare the calculations of the problems; complete a PowerPoint presentation.
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