22 Jun You are considering buying a house for £5
You are considering buying a house for £500,000 and you are deciding between fixed and variable rate mortgage. The fixed rate for 20 years is 5%, while the variable rate is the Bank of England
base rate plus 1.5%. The required rate of return – the discount rate – is
the base rate + 0.5 percent. (a) Calculate, which mortgage is cheaper, if the Bank of England base rate is currently at 0.5% and is expected to grow 1% every year for next 4 years before
stabilising for the remaining period. Use annual compounding. (b) Adjust your analysis from the part a to reflect 20% uncertainty regarding the base rates (at any moment the base rate could be 20%
higher or lower) (10 marks)
2. The Bank of England has decided to lower its base interest rate by 0.5%. What impact will this have on the values of stocks and bonds in your portfolio? Explain critically, using the
required rate of return and find a recent examples using the FTSE 100 index and UK Gilt yields. (10 marks)
3. What are, in your opinion, the underlying reasons for the growing income inequality which has occurred in the UK during the past 30 years? Use real data in your analysis, such as mean and
median income as well as income and other taxes. (10 marks)
[LO 1,3]
Task 2 (20 Marks):
Examine the purpose of a credit score and how you can manage and assess your personal credit score. Ensure you are addressing risk, Annual Percentage Rate, credit agencies and their functions, and
what affects credit scores. Critically evaluate how personal credit score positively and negatively influences the credit market. Include moral issues in your analysis.
[LO 2]
Task 3 (20 Marks):
Analyse the role of Corporate tax in the United Kingdom. You are required to provide a detailed explanation on its application and how it came to be. Your analysis should also cover any relevant
historical events that have helped to shape the current tax structure in the U.K and the scope of the current rules. Critically evaluate what impact the current tax structure in the U.K. has on
individual income groups.
[LO 3]
Task 4 (30 Marks):
1. a) Gather together your records of income (pay slips, bursary awards, etc.) and expenditures (phone bills, food bills, utilities, etc.). Use these to help you construct a monthly personal
budget in which you record your expected income and expenditures. You can use the budget template in Microsoft Excel, find another template on the internet, or even design your own. With this
information, determine how much you can afford to spend on a monthly vehicle payment. (10 Marks)
2. b) Using autotrader.com, find 10 prices for a vehicle
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.