I've just completed module 1 and done the same as you have; copy all the details into the document and tidy it up. Personal banking......................
Think I will your advice, bought quite a few newspapers with no luck finding an ad for a term deposit. All the ad seem to be for online savers these days, just really looking forward to sending this assignment off.
Hi DG Hayes Thanks so much for this information as I too was having difficult finding a suitable add. Used your link and then had an online 'chat' with a bank officer so was able to ask her all the relelvant questions! Have everything I need now to submit my Module 1. Thanks again. Brenda
Hi Simky and Munmun, I didn't see anything in the papers, but understood that it was okay to look on the net - that's where I found mine. You can also go and ask at the banks, they have brochures/lists of what's available at their bank.
Hi guys, i am working through Mod 1. I found it very daunting at first, as I have just realised it is 40 years since I left school, (which I did not make to yr 12), and I haven't studied anything other than parenting and pattchwork/sewing for the last 30yrs. I would just like to encourage anyone else just starting, that it is possible, just one question at a time. Thankyou to all those who have posted here, your comments have been helpful, and made me feel like we are all on this journey this together. I've just been to the banks to get the info for the research section. We have a long weekend, so might some time to nut this section out:)
Hello fellow studiers, It took me 2 months to get through Module 1 and complete the assessment. Hope everyone is enjoying things. I am. I love every bit of this course so far! Will no doubt meet some of you at an event sometime. Jane
Just wanted to say " you go girl". I left school at 14 and have spent the last 30 years raising a family. I have learnt a lot of the mathematical challenges by researching online, then keep on trying until my answer is correct. But it's a fabulous feeling to achieve the result. Good Luck I'm sure you will do great.
Completing this assesment has been a total mind block for me and I have not been able to face it until now.
I have nearly finished and have come up against a question I am not too sure of, it is the question of Step Twelve: assuming you could pay off a home mortgage attracting the CBA's standard variable home loan rate V's the term deposit interest , surley you have to have a base amount of the motgage eg, 400,000 mortgage V's a 300,000 mortgage would be a different outcome right or does it not really matter you just base it on the interest saved off $50,000 ?
Just the interest saved off the $50000 as its not compounds or anything is doesn't matter. If you do your own eqution of say $500000 less $50000 and see how much interest you save vs $200000 less $50000 it may help you understand it a bit better. Hope this helps.
The early bird catches the worm, but the second mouse gets the cheese.
It could just be me, or it's getting too late at night. I've manged to stump myself on how to answer Module 1 Question 11
Using the example of $10,000 and an average rate of 30% tax, explain how a dollar of interest saved (by repaying a mortgage attracting 7% interest) can be a better option than investing the money in a term deposit. [Include calculations.]
I understand that decreasing debt at a higher interest rate is better than saving cash at lower interest. However how to demonstrate that with working has my head aching...
Work out how much interest would be on $10000 mortage vs $10000 in a term deposit and 30% tax off it. If mortage is an investment some interest may be able to be written off also.
The early bird catches the worm, but the second mouse gets the cheese.
Thanks for that; so this is what I have concluded..
But I can not seem to get the tables to cut & paste :(
A $10000 deposit over 10 years incurred a Tax bill between $210 - $307 per year. Resulting in $2,306.06 in money paid out. Total profit made $5380.82
The mortgage had no tax bill incurred as there was no positive gain.
The mortgage paid $6,300.00 in interest. If this is an investment property, a portion can be claimed against personal income tax, thereby creating a profit.
I calculated mine just on a one year example. I think this question is almost identical to the example of the term deposit vs. lump sum HECS payment in: Module 3, section 2.6, page 6.
Hi all At the risk of sounding thick, can anyone explain to me how to calculate the rule of 72 taking into account capital appreciation as in the last two examples in question 3? Know its probably simple but hey it is sunday morning afterall and only one cup of coffee so far :)
Hi Dave;
I've just completed module 1 and done the same as you have; copy all the details into the document and tidy it up. Personal banking......................
Stephen
Thanks for the post Dave,
Think I will your advice, bought quite a few newspapers with no luck finding an ad for a term deposit. All the ad seem to be for online savers these days, just really looking forward to sending this assignment off.
Kind regards,
Mark Zahorjanski
Kind regards,
Mark
Hi DG Hayes
Thanks so much for this information as I too was having difficult finding a suitable add.
Used your link and then had an online 'chat' with a bank officer so was able to ask her all the relelvant questions!
Have everything I need now to submit my Module 1.
Thanks again.
Brenda
Hi Simky and Munmun, I didn't see anything in the papers, but understood that it was okay to look on the net - that's where I found mine. You can also go and ask at the banks, they have brochures/lists of what's available at their bank.
Hi guys,
i am working through Mod 1. I found it very daunting at first, as I have just realised it is 40 years since I left school, (which I did not make to yr 12), and I haven't studied anything other than parenting and pattchwork/sewing for the last 30yrs. I would just like to encourage anyone else just starting, that it is possible, just one question at a time. Thankyou to all those who have posted here, your comments have been helpful, and made me feel like we are all on this journey this together.
I've just been to the banks to get the info for the research section.
We have a long weekend, so might some time to nut this section out:)
Hello fellow studiers,
It took me 2 months to get through Module 1 and complete the assessment.
Hope everyone is enjoying things. I am. I love every bit of this course so far!
Will no doubt meet some of you at an event sometime.
Jane
Just wanted to say " you go girl". I left school at 14 and have spent the last 30 years raising a family. I have learnt a lot of the mathematical challenges by researching online, then keep on trying until my answer is correct. But it's a fabulous feeling to achieve the result. Good Luck I'm sure you will do great.
Completing this assesment has been a total mind block for me and I have not been able to face it until now.
I have nearly finished and have come up against a question I am not too sure of, it is the question of Step Twelve: assuming you could pay off a home mortgage attracting the CBA's standard variable home loan rate V's the term deposit interest , surley you have to have a base amount of the motgage eg, 400,000 mortgage V's a 300,000 mortgage would be a different outcome right or does it not really matter you just base it on the interest saved off $50,000 ?
Confused Simone
Just the interest saved off the $50000 as its not compounds or anything is doesn't matter. If you do your own eqution of say $500000 less $50000 and see how much interest you save vs $200000 less $50000 it may help you understand it a bit better. Hope this helps.
The early bird catches the worm, but the second mouse gets the cheese.
Thank you for your reply. Yes I fully understand now. I think I was way overthinking it :)
hi Guys,
It could just be me, or it's getting too late at night.
I've manged to stump myself on how to answer Module 1 Question 11
Using the example of $10,000 and an average rate of 30% tax, explain how a dollar of interest saved (by repaying a mortgage attracting 7% interest) can be a better option than investing the money in a term deposit. [Include calculations.]
I understand that decreasing debt at a higher interest rate is better than saving cash at lower interest.
However how to demonstrate that with working has my head aching...
any ideas?? - Cheers
Ritchie
Work out how much interest would be on $10000 mortage vs $10000 in a term deposit and 30% tax off it. If mortage is an investment some interest may be able to be written off also.
The early bird catches the worm, but the second mouse gets the cheese.
Thanks for that; so this is what I have concluded..
But I can not seem to get the tables to cut & paste :(
A $10000 deposit over 10 years incurred a Tax bill between $210 - $307 per year. Resulting in $2,306.06 in money paid out. Total profit made $5380.82
The mortgage had no tax bill incurred as there was no positive gain.
The mortgage paid $6,300.00 in interest. If this is an investment property, a portion can be claimed against personal income tax, thereby creating a profit.
This is the basis of negative gearing
Hi Ritchie,
I calculated mine just on a one year example. I think this question is almost identical to the example of the term deposit vs. lump sum HECS payment in: Module 3, section 2.6, page 6.
So if my initial investment is $50000 at 3.7% return for six months.
Tax bracket is 32.5% (which is 1.2%) and current inflation is 2.4%.
Corect me if I am wrong please but my Real Rate of Return (RRR) come to:
3.7%
- 1.2% tax @32.5
- 2.4% for inflation
______________________
0.1 Return after Tax and Inflation?
Am I correct or wrong?
Hi all
At the risk of sounding thick, can anyone explain to me how to calculate the rule of 72 taking into account capital appreciation as in the last two examples in question 3? Know its probably simple but hey it is sunday morning afterall and only one cup of coffee so far :)
Thanks
Hello all, I just finished assessment for Module 1. How do we go about submitting it, do we post a harcopy of it?
Hi Alex,
Great! They have always accepted email copies from me with attachments if required.
Cheers,
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