A financial matter is regarded as the knowledge gained about financial management. A financial matter is a general issue related to the one who makes the continuing power of legal representation based on accommodating circumstances of financial matters. It takes account of all lawful matter that speaks about the financial relationships of the principal.
I have been studying about financial matters for numerous years to prepare for future at my local university. According to Hedges (2011), a financial matter is like any other knowledge and acts an enduring progression in lives of people. I have also used supplementary tools to learn to handle financial matters in an effective way that helped. I have taken lessons to learn financial matters, involved myself in the budget planning, and joined the debit union’s infallible program that updates people about the right way of managing the financial issues. According to Burkett (2001), the knowledge of supply and demand can set up an awareness of price rises and interest rates. As a mathematic student, I have taken an arithmetic course that included useful aspects of financial management. By studying in this class, I feel geared up to plot a course to get a loan, first to finance and pay off my educational loans and then in the future I also plan to fulfill my parents dream of owning a house and for all these procedures, I will be taking a loan of $350,000 based on compound interest for ten years.
Compound interest is regarded as the interest added to the primary deposit or loan so that the additional interest is also able to earn interest from the loan that has been provided. Compound interest is considered as an interest calculated on the preliminary principal and also on the accumulated interest of earlier periods of a loan. The bank sets the interest rate of 10% based on the compound interest that can be considered as interest on interest, and this interest is going to be figured on a yearly basis. I will use my educational and personal concepts about financial matters and will distribute $ 350,000 equally, At first I will pay my student load which is around $50,000, I will also help my parents in buying a new home, and for that purpose, I will need around $250,000. With this loan, I am also planning to start my own business with the remaining amount.
In order to calculate the compound interest, first we will evaluate the total amount of loan with the rate of interest and will accumulate it with the number of compounding periods
Loan: $ 350,000
Rate: 10%
Compound: Annually
Time duration: 10 Years
Compound Interest: $ 907,809.86
I would like to give financial advice to other young aspirants to prefer to avoid the burden of money owing and debt. I would also like to give them an idea of evaluating loans and its consequences for the reason that the compounding interest will negatively affect the aptitude of a business to generate profitable income as most of the money income will be paid to the bank to pay the loan with massive interest.
In the end, it could be concluded that the conception of compound interest changes the functioning financial system into an exceedingly dominant profit-generating tool. Compound interest is the procedure of making profits on a property’s reinvested incomes. Since, I have observed and been trained by the teachers about advantages of financial matters, therefore it could be concluded that compound interest can be incredibly intimidating and encouraging at the same time, as it gives money when needed, but takes back with a high level of interest.
References
Burkett, L. (2001). Money Matters: The Host of the World's Most Popular Financial Radio Program. Nashville: Thomas Nelson Inc.
Hedges, E. (2011). The Heart of Financial Matters: Seeking a Servant’s Heart. Bloomington: iUniverse Publishers.
