MCS 2100 Lecture Notes - Lecture 9: Universal Life Insurance, Sinking Fund, Investment

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: Rosemary Vanderhoeven

Document Summary

Setting financial goals and deciding how they will be reached. Helps you review, revise, align your goals with changing circumstances. Once goals are set alternative courses of action to achieve the goals need to be identified and evaluated. Understand what opportunity costs are involved and how to mitigate various associated risks. Need to be considered when evaluating alternative courses of action to achieve goals. The cost of money that is borrowed. A dollar received today is worth more than a dollar received one year from today because of inflation. Lender is compensated by interest earned: a future value of a sum of money. If you deposit money today how much will it be worth in the future at a given interest rate: a present value of a sum of money. How much money must you deposit today to have a certain sum in the future at a given interest rate future value of a series of deposits c)