Assignment:
Q1) You are having a meeting with the employees of Financial Outsourcing, Inc. During the meeting, you were asked several questions. Give your opinion to the questions.
- Why do you think the Federal government adjusts (raises or lowers) the prime interest rate?
- What do you think are some of the effects of the adjustments?
- Why do you think bankers, investors, lenders, and consumers closely follow the movement of the prime interest rate?
- What are some of the implications of a change in the prime rate?
- ''Annuities are not a wise choice for certain investors''. Do you agree with that statement? Write a brief paragraph explaining why or why not .
Q2) During the meeting, several employees remark that some of the clients have asked advice about offering a trade discount for purchases in wholesale quantities.
- What do you tell them?
- Should they offer trade discounts?
- Is your response the same for all your clients? Explain your rationale.
Provide complete and step by step solution for the question and show calculations and use formulas.