Posted: October 6th, 2022

Introductory Personal FinanceASSIGNMENT

FNCE20003
Introductory Personal Finance
ASSIGNMENT 2
Semester 2, 2022
Ready by
Carsten Murawski
Division of Finance
School of Enterprise and Economics
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FNCE20003 Introductory Personal Finance
Project 2
Semester Two, 2022
ADMINISTRATIVE ARRANGEMENTS
Due date: 11:59 pm on Friday, 7 October 2022
Late
assignments:
Late submission assignments might appeal to a penalty except an extension has
been
granted. Extension requests needs to be made via the next
type:
https://commercestudentcentre.formstack.com/varieties/assignment_extensio
n_request_copy_1
All extension requests have to be made previous to the Assessment due date and
supported with acceptable documentation.
Until an extension has been granted, penalties to the Assessment might be
utilized.
For assignments submitted after the due date, the mark awarded might be
decreased by 10% for every day the work is late.
For assignments submitted later than 5 working days after the due date will
not be marked and can obtain no marks.
The place to
submit:
Project submission is by way of the LMS topic web page (menu merchandise
‘Assignments’).
Phrase restrict: The phrase restrict is 600 phrases. Assignments exceeding the phrase restrict
could also be penalised. The phrase restrict doesn’t embody the summary,
graphs/tables, footnotes or bibliography.
Marks: This project counts 15% in direction of the ultimate mark on this topic.
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ASSIGNMENT INSTRUCTIONS
The project have to be your individual work. College students are inspired to debate the project
and to share data sources. Nonetheless, the writing of your project have to be performed
individually and independently by every group. The place use has been product of the work of others
(for instance, via your studying of books, articles or webpages), acceptable recognition
have to be given by way of citation marks and referencing. Failure to present such recognition is
plagiarism and can end result within the annulment of your mark for the project. Different disciplinary
motion may additionally be taken.
Essay presentation points
Typing: Use both double spacing or 1½ spacing.
Grammar,
punctuation and
spelling:
Right grammar, punctuation and spelling are anticipated.
Develop a plan
Earlier than you begin working in your project, it’s a good suggestion to put in writing a quick plan. On this
plan, you checklist the subjects you wish to cowl and the order during which you want to talk about them.
Earlier than you begin writing you’ll be able to alter your plan so your argument flows correctly and also you do
not use concepts or ideas earlier than you’ve gotten defined them to the reader.
Use of graphs
For example your solutions the place you imagine it will help understanding, use graphs.
Select your graphs fastidiously and attempt to be exact – too many could make a solution arduous to
observe. To make use of a graph accurately, you could:
Fastidiously label the graph – Every graph needs to be titled and all axes and curves needs to be
labelled. Traces and symbols needs to be clearly recognized.
Focus on the graph – Focus on the graph in phrases and relate it to your essay.
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Use of references: The Harvard System
References within the textual content give the writer’s surname, the date of publication and, if a quote or
particular reality is referred to, the web page quantity as nicely. For instance: ‘On this part we
replicate the Fama and French (1993b) assessments on our pattern of Japanese shares…’
The abbreviation ‘et al.’ could also be used the place there are greater than three authors as follows:
‘See Chordia et al. (2005) for a dialogue of market liquidity…’
When citing a number of references to help a specific level, checklist them chronologically and
separate them with semi-colons:
‘Monetary economists have extensively studied the cross-sectional determinants of U.S. inventory
returns (Merton, 1973; Ross, 1976; Fama & French, 1993).’
The right way to cite references in your essay reference checklist or bibliography
A. BOOKS
Markowitz, H.M., 1991, Portfolio Choice. Blackwell Publishers, Cambridge, MA.
B. JOURNAL ARTICLES
Brau, J.C. and S.E. Fawcett, 2006, ‘Preliminary public choices’, Journal of Finance. Vol. 61,
pp. 399-436.
C. ARTICLES OR CHAPTERS IN BOOKS
Karolyi, G.A. and Stulz, R.M., 2003, ‘Are monetary belongings priced regionally or globally’ in
Handbook of the Economics of Finance, edited by G.M. Constantinides, M. Harris and
R.M. Stulz, Elsevier: North Holland, Amsterdam.
D. NEWSPAPER ARTICLES
Byrne, Henry, ‘Brief season spoils analysts’ focus’. The Australian Monetary
Assessment, 17 March 2006, p. 31.
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FNCE20003 Project 2 Directions
Background:
This project builds on Project 1.
A good friend desires to get a bank card from CommBank. Nonetheless, she is overwhelmed by the
many various playing cards out there, and he or she doesn’t actually perceive the way to evaluate the
totally different playing cards. She asks you for steering as she is aware of that you’ve got been studying about
bank cards in Introductory Personal Finance.
You resolve to observe Doyle’s technique of valuing a bank card.1 Please learn the report
(together with the Appendix) and apply the strategy to the next situations.
Your good friend is contemplating these 4 bank card choices from CommBank: Neo, Low Charge,
Low Charge and Awards Card (https://www.commbank.com.au/credit-cards/instruments/credit-cardevaluate.html?ei=ban-cta_compare). She expects to spend about $1,000 per 30 days utilizing her
card, on issues like groceries, utilities, and so forth. She has an informal job and expects to have the ability to
repay the bank card stability in full every month.
For the next questions, assume that:
• your good friend will spend a most of $1,000 per 30 days;
• her month-to-month spending is fixed all through the 12-month interval;
• your good friend wouldn’t borrow cash in any other case;
• the present financial savings fee is zero.85% p.a.;
• the interest-free interval is the same as one month for simplicity (not 55 days);
• the introductory gives, if any, are usually not relevant.
1. First, put together a desk evaluating the annual charge and rate of interest of the 4 choices
(excluded from the phrase depend).
Second, use the strategy developed by Doyle to calculate the annual internet financial
1 Cf. e.g., Mary-Alice Doyle, Client Credit score Card Selection: Prices, Advantages and Behavioural Biases, Analysis
Dialogue Paper 2018-11, Reserve Financial institution of Australia, 2018,
https://www.rba.gov.au/publications/rdp/2018/2018-11/literature.html.
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profit of every of the 4 playing cards on your good friend above, assuming the state of affairs
described.
Which bank card is the best choice on your good friend?
Please embody your working as a determine/desk within the project (excluded from the phrase
depend).
Use an acceptable present card to estimate the worth of the rewards program. Ensure that to
present a justification of your present card alternative (1-2 sentences max.).
Suppose that your good friend chooses the CommBank Awards bank card. After about six months
of utilizing her new card as deliberate, she immediately loses her informal job. Consequently, she will be able to’t
repay the complete stability that month and solely makes the minimal reimbursement. She quickly finds
one other job. She retains spending at a fee of $1,000 per 30 days provided that these bills are
‘wants’ and she will be able to’t actually go with out them. On the finish of the following month (having
amassed one other $1,000 of stability), she repays $1,000 and retains doing the identical for the
subsequent 6 months.
2. Calculate the web financial good thing about the CommBank Awards bank card for the
12-month interval primarily based on the state of affairs described above.
Was it a good suggestion on your good friend to decide on the CommBank Awards bank card?
Why/Why not?
Please embody your working as a determine/desk within the project (excluded from the phrase
depend).
That can Help you perceive bank card curiosity prices, see Part 2.four of this webpage from
NAB: https://www.nab.com.au/private/credit-cards/terms-conditions/digital/how-thingswork.
Because you solely know your good friend expects to spend about $1,000 per 30 days and never when the
particular person purchases happen in a month, you can not use every day curiosity calculation as advised
by NAB.
As a substitute, you’ll use month-to-month curiosity calculation to approximate the curiosity prices. Additionally
assume that on common, your good friend’s month-to-month spending takes place in the midst of the
month. Because of this the curiosity prices on purchases would kick in midway via the
month, if any.
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three. Briefly talk about a possible treatment of the issue of obfuscating bank cards.
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Marks might be allotted as follows:
12 Marks – Content material of the report (demonstrated analysis effort, data of the subject and
Assessment)
three Marks – (Visible) presentation of the report (structure, spelling, grammar, and so forth.)

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Tags: Introductory Personal Finance ASSIGNMENT