Finance Week 2 Essay Example | Topics and Well Written Essays - 500 words

Finance Week 2 - Essay ExampleI am pleased that we can use a financial calculator to sustain us, but if I am unsure about the variables and so it wont help me much. For interest rates, I was previously unsure about how they argon determined and why they can change so quickly. After going through Chapter 6, however, I now feel like I have a good grasp of it.2. The financial ratio that I find easiest to understand is the single future cash bunk ratio because it is very straightforward and in that location are no added variables. By that I mean that anyone with only a basic misgiving of math would be able to comprehend it because the ratio follows a pattern. The hardest financial ratios to understand are those with multiple future cash flows because the answers can be unpredictable if thither is a series of unequal amounts. The cash flow timeline helps me a lot because I can visualize each cash flow in terms of where it comes from and how it influences the overall outcome. The most difficult thing is try to figure out where the investment problems variables fit into the equation. Once I have the right equation, I can usually solve for the unknown variable because then it just becomes a simple case of math.3. The financial calculator is both useful and challenging for me at the same time. I like it because it helps me to find the patch up answer in a short amount of time. If I have figured out all the variables, then I can simply ballyhoo the numbers in and the calculator will spit out the answer. The one problem that I have with it is that I sometimes dont to the full understand why it gave me a certain answer. If I was able to work through the problem step-by-step, then I would have a better understanding of it.4. I would describe the current level of interest rates as moderately high. Although current inflation is relatively low due to the financial crisis, there is still a lot of risk in the marketplace, and this ensures that