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Ponzi Scheme Explained

Ponzi Scheme Explained

What is a Ponzi Scheme?


Ponzi Schemeis a fraudulent operations in which investment capital is unlawfully distributed in a deceptive manner as a means to project the illusion of financial gains resulting from investment endeavors; typically, the investment capital of newer clients will be proportioned to existing clients with the hopes of instilling confidence in the operator’s investment acumen – the newer client’s will be deceived into believing that their investment capital was invested and subsequently lost as a result of market activity:


In reality, the money that was given in good faith – as an investment – was never invested at all; in contrast, the investment capital that was given was immediately funneled into the accounts of individuals with larger investment portfolios – this particular action provides a fallacious illustration of market gains as a result of investments.


Bernard Madoff, who was indicted in 2008, is considered to be responsible for the largest Ponzi Scheme to have taken place within the history of the United States.


The History of Ponzi Schemes


The first Ponzi Scheme was recorded as taking place in 1903 by an Italian immigrant named Charles Ponzi. The eponymously-names Ponzi Scheme consisted of Ponzi soliciting investors to provide him with money to invest within the replay coupon industry. The initial investors solicited by Ponzi granted him money towards this fraudulent endeavor; however, that investment capital was misappropriated by Ponzi himself.


As Ponzi recruited subsequent investors, he funneled the new investment capital towards the preexisting investors – the final stages of the Ponzi Scheme occurred as Ponzi utilized newer investment capital to substantiate returns to the original investors. As this illegal apportionment of funds took place, Ponzi amassed a large amount of wealth as his investors suffered financial losses due to this fraudulent activity.


The Ponzi Scheme Process


By definition, a Ponzi Scheme cannot – and will not – be able to endure a prolonged period of time; eventually, the funding for a Ponzi Scheme, which is reliant on new recruitment of investment capital, must eventually collapse.


However, individuals operating a Ponzi Scheme typically will operate a Ponzi Scheme with the intent of claiming the dissipation of their respective endeavor; the originator of a Ponzi Scheme will misrepresent this dissolution as a result of financial losses sustained by the investment market – in truth, the facilitator of a Ponzi Scheme will have embezzled a bulk of this capital masked by false claims of financial loss:


The facilitator of the Ponzi Scheme will seek to recruit investors with regard to a legitimate investment proposal; typically, this facilitator will attempt to solicit individuals with large sums available for investment prospects – the facilitator will accumulate a large sum of money through the embezzlement of this capital.


Once an amount of investment capital is attained by the facilitator of the Ponzi Scheme, that facilitator may continue to solicit individuals with smaller budgets for investments; the facilitator will use this capital to repay the initial investors – this swift repayment will be used to instill confidence the investment acumen of the facilitator.


A loss of funds will be reported back to the secondary investors, while the primary investors will continue to provide investment capital with hopes of earning more return; the facilitator will continue this process until funding is depleted.

All About Worldcom

All About Worldcom

What is Worldcom?
Worldcom was a telecommunications company that underwent a merger with fellow telecommunications company MCI in 1997; subsequent to the merger of these 2 giants within the telecommunications industry, the conglomerate company was renamed ‘MCI Worldcom’.
In 1999, the Sprint Telecommunications Company had planned to merge with the MCI Worldcom Company, yet in government regulation prohibited this merger from taking place due to presumable violations of anti-trust statutes.However, upon mention of Worldcom, historians and economists alike agree that public focus is seldom drawn to the commercial development of this conglomerate in lieu of the accounting scandal in which it was involved in 2002; the Worldcom Company name may tend to draw more focus to the massive financial loss resulting from the presumed unraveling of the company due to the fraudulent operation of the company itself.
What is the Worldcom Accounting Scandal?
The Worldcom accounting scandal was a financial scandal that involved the MCI Worldcom telecommunications company. Although the investigative reports provided by the Securities and Exchange Commission – as well as those belonging to private auditors who undertook additional investigation – state that the Worldcom scandal began in the year 2000, there currently exists no specific date. However, these investigative reports successfully named and classified the nature of the accounting scandal, as well as succeeded with regard to its respective criminal indictments:
Worldcom Finances and Investments
Bernard Ebbers was a Canadian Entrepreneur who not only gained notoriety for the founding of the Worldcom Company, but also acted as the company’s Chief Operations Officer (CEO) both prior to – and following – its merger with MCI, and subsequently Sprint. Following the merger, Ebbers earned a large amount of capital in addition to a vast amount of company stock; the merger resulted in the disbursement of stocks and assets resulting in Bernard Ebbers remaining a primary shareholder and CEO.
Insider Loans and Lending
Subsequent to the decline of the MCI Worldcom stock with regard to the commercial market, Bernard Ebbers had begun to lose a vast amount of capital; as a result, he found himself to be unable to provide sufficient maintenance to other investments that he had undertaken. Ebbers approached the board of MCI  Worldcom and requested a loan of $400 million in order to provide his with the financial relief necessary to upkeep his peripheral expenses and investments; the executive board agreed to provide 
Ebbers with a loan in order to sway him from selling the entirety of his shares – the board feared that the selling of Ebbers’ shares would not only promote a sense of panic with regard to other investors in MCI Worldcom, but would also present an opportunity for a hostile takeover.
The MCI Worldcom Accounting Scandal
Subsequent to the release of the loan to Bernard Ebbers, the executive board witnessed the gradual insolubility of the company; both the $400 million given to Ebbers existing in tandem with the declining profits sustained by MCI Worldcom placed the company on the brink of bankruptcy. In lieu of informing MCI Worldcom investors of the true state of the company, a number of executives purposefully misrepresented the company’s earnings and spending; this accounting fraud purportedly resulted in the fraudulent reporting of upwards of $11 billion that the company did not have.

Conclusion
MCI Worldcom filed for Chapter 11 bankruptcy in 2004 and was acquired by the Verizon telecommunications company; Bernard Ebbers was both indicted – and subsequently sentenced to a 25 year prison sentence.

Quick Overview On Junk Bond

Quick Overview On Junk Bond

What is a Junk Bond?

A Junk Bond is a type of a bond that is classified as per its Grade ranking with regard to both the inherent risk of repayment, as well as the stipulations implicit within the terms of the loan itself. The term Junk Bond receives this negative moniker due to the fact that there exists an implication in which the inherent improbability of repayment on the part of the borrower is considerably higher than its lower-risk counterparts.

Due to the inherent risk of default, a Junk Bond typically retains an interest rate that is considerably higher than those interest rates offered with standard bonds; a financial history on the borrower that reflects the default of loans, failure to repay, or bankruptcy will typically result in lowered bond grades – this serves to alert the owner of a bond that a presence of risk exists in conjunction with the bond itself.

What is a Bond?

In contrast to stocks, which are individual shares of a publically-traded company available for purchase on the commercial investment market, a bond is a loan that is given by an individual investor. Perhaps the most common types of bonds within the United States are United States Government Bonds; these bonds are loans indirectly granted to the Federal Government available for commercial purchase – as the bond matures, the latent interest grows:

The growth of an individual bond normally relies on the length of time that bond remains in one’s possession; redeeming a bond immediately after its purchase will normally lack any substantial financial gain, as there has not existed a sufficient amount of time provided for the development of interest

As the name suggests, a bond is a financial instrument that acts as a loan to a company or institution; the term bond signifies an implicit responsibility with regard to repayment – although repayment in regards to a Junk Bond is not impossible, the term ‘Junk Bond’ suggests the implicit risk of a failure of the borrow to successfully satisfy repayment

Types of Bonds

Bonds range from low-risk financial instruments to a ‘high-risk’ Junk Bond, bonds varying in nature may be offered for purchase – or individual investment – within the realm of trade and exchange markets. The identification – and subsequent classification – system employed by the investment market providing a setting for the sale of bonds – as well as Junk Bond – allows for investors to be made privy to any or all inherent risks latent within the nature of a bond itself:

1.       Bond Rating: AAA

          Bond Grading: Investment Bond

          Inherent Risk: Lowest Risk

2.       Bond Rating: AA              

          Bond Grading:Investment Bond

          Inherent Risk: Lower Risk

3.       Bond Rating: A

          Bond Grading:Investment Bond

          Inherent Risk: Lower Risk

4.       Bond Rating: BBB

          Bond Grading:Investment Bond

          Inherent Risk: Moderate Risk

5.       Bond Rating: BB to B

          Bond Grading: Junk Bond

          Inherent Risk: Great Risk

6.       Bond Rating: CCC to C

          Bond Grading:Junk Bond

          Inherent Risk: Greatest Risk

7.       Bond Rating: D

          Bond Grading:Junk Bond

          Inherent Risk: Bond Currently in Default

Must Know Blackmail Facts

Must Know Blackmail Facts

What is Blackmail?
Blackmail is defined as a criminal activity that is implemented with hopes of using evidence – or proof-based information – with the hopes of obtaining economic gain as a result of the institution of its use with regard to another individual or entity.
The illegality latent within the crime of Blackmail is illustrated in the manner in which the victim of a Blackmail will be swayed – both through threat or through fear – to act in a certain manner or partake in certain behavior in order to avoid the prospective repercussions of the release of that evidence in possession of the perpetrator of a Blackmail offense. While Blackmail is considered to be a crime, the exploitative catalysts latent within this crime are considered to involve legal means of exploitation, such as the release of classified or unauthorized information.
An Example of Blackmail
Although Blackmail is a fairly general crime that can take place within a variety of settings, Blackmail conducted in order to render financial gain is not uncommon; the following example is purely fictitious and in no way is meant to resemble real events – any resemblance to real events or people is purely coincidental:


Financial Blackmail
The President of the Widget Company has been made aware that some photographs have surfaced depicting that individual partaking in an extramarital affair; upon the discovery of this affair, the consequences could be dire with regard not only to the future of the Widget Company, but the President as well – the release of the photographs could result in divorce, as well as well as the termination of employment:
The individual in possession of the photographs contacts the President of the Widget company in an anonymous fashion; this individual demands that the President deposit a certain amount of funds into a bank account specified by the perpetrator of this crime – a crime known as financial Blackmail
The perpetrator explains that if the funds are not deposited, the photographs of the President will be released to the public
The President of the Widget company agrees to deposit the funds in order to avoid the shame and dishonor that may have resulted from the public release of the photographs; as a result, the President of the Widget Company was considered to be a victim of Blackmail

Blackmail vs. Extortion

Although both terms involve the exploitation of one individual at the hands of another, the methodology employed in each crime differ – while these terms are commonly used interchangeably, within each term are latent differences:

Blackmail
As previously mentioned, Blackmail involves the exploitation – and subsequent manipulation – of another individual or entity through otherwise legal means, such as the threat to release private media, documents, or information

Extortion

Like Blackmail, extortion is defined as the criminal act on the part of an individual or entity with the hopes of controlling, manipulating, or forcing the behavior of another individual or entity; however, Extortion typically occurs in tandem with the utility of threats of violence, harm, or other natures of illegal activity –  the involvement of illegal activity separates extortion from Blackmail.

Corporate Finance

Corporate FinanceWhat is Corporate Finance?

Corporate finance deals with the financial decisions that a business enterprise must evaluate and subsequently affirm. Not only does the field view the business in a macro sense, but corporate finance also concerns the necessary tools and analysis that is needed to deliver an economically efficient decision.The primary goal of such a decision is to maximize the value of the corporation, while effectively managing the financial decisions of the company.
Corporate finance is held in contrast to managerial finance, which studies the financial decisions of firms rather than just corporations; however, the principal concepts of corporate finance may be applied to the financial problems of all firms.

Long-term and Short-term Decisions within Corporate Finance:
The discipline of corporate finance can be broken-down into two specific categories or techniques: long-term and short-term decisions.
Decisions regarding capital investments are long-term decisions. These decisions typically involve evaluations regarding which projects of a business venture should receive investment and how to finance that particular investment (either through raising equity or debt) and when or whether to pay-out dividends to shareholders.

Capital investment decisions—which are the primary long-term decisions of corporate finance—relate to the capital structure and fixed assets of the underlying corporation. These decisions are based on the following inter-related criteria:
1.) Maximize the value of the corporation through investment—investing in various projects must yield a positive net present value.
2) The investment projects must be financed in adherence to an efficient and appropriate plan.
3) If a dearth of opportunities exists, the corporate management team should maximize shareholder value by delivering any excess cash to the underlying investors. As a result of these decisions, capital investment within the field of corporate finance revolves around investment decisions, dividend decisions, and a multitude of finance decisions.
Short-term decisions typically deal with the day-to-day balancing of current liabilities and assets. The primary focus of short-term decisions revolves around the management of cash, short-term borrowing and lending, as well as the management of the firm’s inventory.
Corporate Finance and Investment Banking:
The field of corporate finance is directly associated with investment banking. The typical responsibilities of an investment banker are to evaluate a company’s financial needs as they correlate to raising capital. Upon evaluating the need to raise capital, the investment bank will then structure a means to raise the appropriate type of capital and evaluate which grouping of capital is needed. Once received, the capital is then used to develop, create, or grow the particular business model.
Corporate Finance Project Valuation:
The field of corporate finance will evaluate each project and investment while using a discounted cash flow valuation. The project with the highest net present am to estimate the timing and size of the incremental cash flows, which result from the value, will be applied to the corporation’s business model. This process requires the management team to estimate the timing and size of the incremental cash flows subsequent to the investment. All future cash flows, in a corporate finance evaluation, are discounted to determine the asset’s present value. The present values are then compared to the initial investment, yielding the net present value.

Understanding Espionage

Understanding Espionage

What is Espionage?

Espionage, which oftentimes exist in tandem to its
colloquial classification known as ‘Spying’, is the criminal activity involving
the unlawful and unauthorized encroachment of one individual into the personal,
private space or domain belonging to another individual or entity; during this
encroachment, the individual accused of Espionage will typically – and
illegally – accumulate privileged information and date to which they are
unauthorized. In a large majority of Espionage cases, the victim of Espionage
is unaware that this unethical and illegal gathering of information is
occurring; typically, individuals will gain otherwise unauthorized access to
these restricted, private domains through tactics involving fraud, forgery, and
blatant misrepresentation. Although Espionage is a fairly generalized criminal
activity, the notion on Financial Espionage is not uncommon within the
setting(s) of both commercial and financial activity.

Types of Financial
Espionage

Financial Espionage can take place in a variety of methods;
in certain cases, this type of illegal encroachment can take place within a
physical, face-to-face setting – conversely, the advent of virtual technology
has allowed for Financial Espionage to take place remotely and anonymously:

Physical Financial Espionage

This type of Financial Espionage may occur in the event that
an individual is allowed to gain access to areas, domains, setting, and
information that is considered to be privileged; this may take place as a
result of that perpetrator being hired by a specific financial company while
under the employ – or contract – of a rival financial company. During the
fraudulent employ of the perpetrator of Financial Espionage, they may be
granted access to authorized financial records and reports; typically, this information
may be funneled back to the sponsors of the Financial Espionage for economic
gain

Virtual Financial Espionage

In accordance with the development of computer and
online-based technology, Financial Espionage taking place on a virtual level
has become increasingly prominent; upon the illegal and unlawful access of
financial records and reports belonging to individuals – while retaining the
classification of ‘privileged information’ may be accessed through a variety of
cyber-crimes employing electronic infiltration into data systems

Crimes Associated
with Financial Espionage

The classification of Financial Espionage is typically a
result of events or activities undertaken by the perpetrator of this crime
gaining unlawful access to information or data existing within the private –
and oftentimes restricted – domain belonging to another individual or entity;
subsequent the enacting of Financial Espionage, privileged financial
information, which varies in nature is obtained through fraudulent means. In addition,
subsequent to the attainment of this information, a wide range of criminal
activities can be associated with the fate of the unlawfully-attained
information:

Trespassing

This is classified as the physical act of unlawfully
encroaching on the property belonging to another individual in an unauthorized
manner; in certain cases, individuals accused of a variety of Espionage charges
have been subsequently accused of trespassing in order to
illicitly collect private and personal information

Forgery

Upon fraudulently presenting documentation in order to
obtain access to privileged information or data – albeit through illegality,
the presentation of unauthorized, duplicated documentation manufactured in
order to deceitfully illustrate authentic credentials

What Are Derivatives

What Are Derivatives

What are Derivatives?
 
 
A stock derivative is a financial instrument that contains a value based on the expected future movement and prices of the asset to which it represents or is linked to. The assets in a stock derivative are stocks; however, a derivative in general can take the form of any financial instrument included currencies, commodities, and bonds.
 
 
Derivatives, because of their complexity and uniqueness, are referred to as “alternative investments.”
 
 
A derivative, on its own, possesses no value; however, the more basic types of derivatives are traded on markets before their expiration date as if they were generic assets.
 
 
Relationships and Characteristics of a Derivative
 
 
Derivatives are categorized by the following relationships and characteristics:
 
 
1.    The relationship between the underlying equity or asset and the derivative itself, meaning the nature of the contract i.e. swaps options or forwards.
 
 
2.    The type of underlying asset that is being exchanged (i.e. foreign exchange derivatives, interest rate derivatives, commodities, credit derivatives, or equity derivatives. 
 
 
3.    The market in which the derivative is exchanged and transacted (i.e., over-the-counter derivatives or exchange-traded derivatives.
 
 
4.    The pay-off profile attached to the derivative.
 
 
5.    The characteristics attached to the derivative, meaning is the derivatives vanilla or exotic in nature?
 
 
Why are Derivatives used?
 
 
Derivatives may be used for a variety of reasons; however, investors will commonly take part in these forms of transactions for the following reasons:
 
 
1.    Derivatives provide leverage so that a small movement in the underlying value of the asset can create a large difference in the value of the derivative contract.
 
 
2.    Derivatives enable investors to speculate and generate a profit from the transaction if the value of the underlying financial instrument moves the way that they expect. For example, investors commonly purchase or take part in a derivative agreement based on a notion that a stock moves or stays in or out of a specific price range.
 
 
3.      Derivatives are commonly used to mitigate or hedge risks of an underlying asset. By purchasing or entertaining a derivative contract an individual can obtain both side of a value move, meaning they can play the opposite direction to their previously position to cancel some or all of their exposure to a given financial investment.
 
 
4.    A derivative will also help obtain exposure to the underlying financial asset where it is not possible, in normal circumstances to obtain such a right. For example, investors can partake in weather derivatives.
 
 
5.    A derivative contract also offers the ability for the investor, where the value of the derivative contract is linked to a specific condition or event. 
 

Important Insider Trading Facts

Important Insider Trading Facts

What is Insider Trading?

Insider trading is one of the most prominent and notorious methods of Securities Fraud, in which individual brokers or investors are made aware of unauthorized and privileged information with regards to an investment opportunity; typically, this information is not only unavailable to the general public, but is indicative of potential increases or decreases with regard to that company’s stocks:
The term ‘Insider Trading’ is structured as per the inclusion of the word ‘Insider’, which conveys a setting – albeit illegal – in which only presumably privileged  individuals are party to information involving the trade and exchange of stocks.
Insider Trading typically results in preemptive investment activity resulting from privileged – albeit illegal and unlawful information – on the part of those party to the information in question.
In many cases with regard to Insider Trading, an individual involved with a company whose stock is publically traded will share – or sell – information with regard to an event involving the company in question that is expected to drastically alter the behavior of the company’s stock; resulting in opportunities granted in an unlawful and unethical nature to other individual investors.
The true damage of this knowledge takes place outside of the knowledge of the general populace, allowing unfair advantages to the select few privy to the information provided by Insider Trading.


Insider Trading and Microcap Fraud

Due to the fact that Insider trading involves the illegal application of information not available to the general populace, the information is garnered from an inside source and can be applied in order to render profit and benefit in investment endeavors. In the event that Insider Tradingoccurs in tandem with Microcap Fraud – a nature of securities fraud occurring as a result of the unlawful regulation of a stocks behavior resulting from mass-selling or purchase – substantial damage can take place:
Due to the decreased price latent within Microcaps – or ‘Penny Stocks’ – a large amount of these stocks can be accessed and subsequently released; as a result, a single individual or entity is afforded the prospective opportunity to control the perceived behavior of that particular stock.
In the case of Microcap Fraud fostered by Insider Trading, an individual – or individuals – may conspire with each other with regard to investment endeavors; collectively, these individuals may secretly agree to conduct mass-purchases or mass-sales of an individual stock, which allows them an unfair advantage with regard to subsequent gains or losses resulting from this activity.

Insider Trading and the SEC

The investigation of commercial operations believed to be conducting Insider Trading activity is undertaken by the Security and Exchanges Commission (SEC), which is the governmental agency responsible for all maintenance of legality with regard to the collective operations and lawful facilitation of activities rooted in securities and investment. The SEC has been responsible for a multitude of investigation involving the discovery of Insider Trading activity; some of which have involved some of the most notorious and noteworthy circumstances – the following include famous Insider Trading investigations, which resulted in criminal prosecution:
         Albert H. Wiggin; Chase National Bank Insider Trading Scandal (1929)
         Dennis Levine; Nabisco Insider Trading Scandal (1986)
         Martha Stewart; ImCloneInsider Trading Case (2003)
         Jeffrey Skilling; ENRON Corporation Insider Trading Case (2004)
         Robert Moffat; New Castle Funds Insider Trading Scandal (2010)

Escrow Explained

Escrow ExplainedEscrows Explained

An escrow is a type of arrangement where a third party (typically independent and entrusted) receives and subsequently disburses finances or legal documents to two or more underlying parties aligned with the escrow. The escrow contains contractual provisions, which will state that the third party must deliver the funds or documents at a specified time.
An escrow account is typically established to hold separate funds for the purpose of paying primary bills, such as property taxes, an individual’s homeowner’s insurance, or an insurance premium. The third party, who holds the funds, will subsequently deposit the individual or entity’s funds into the escrow and then use that money to pay monthly bills when they are due. The escrow thus, effectively eliminates the probability of late payments or any issues where additional cash is needed.
The holder of the escrow, will take the annual amounts for the aforementioned bills, divide them by 12, and subsequently establish the payment amount that is then added to the individual’s monthly principal and interest payment. For example, if an individual’s homeowner’s insurance annual premium is $500, their monthly payments are roughly $41. When the bill is due, the holder of the funds will be made available since the money is already placed in the escrow account.
The individual will receive an escrow statement which will explain how the monthly escrow portion of the payment was calculated. Additionally, the escrow statement will estimate the annual expected costs of the individual’s bills. The escrow statement is received annually. 
Types of Escrow Accounts:
An escrow generally refers to the funds held by the third-party on behalf of the individual placing the monies in the account. In the United States, an escrow account is best known in the context of real estate; escrows are typically aligned with mortgage payments. In this relationship, a mortgage company will establish an escrow account to deliver funds to the underlying individual to pay property taxes and the insurance policy aligned with the particular mortgage agreement.
Escrow companies are also used in the transfer of valuable assets such as property, both in the real and intellectual sense. As is common with a traditional escrow account, an Internet escrow functions when an individual places money in the control of a licensed and independent third party to help protect the buyer and seller in a specific transaction.
A banking escrow is commonly used in automated teller machines and other forms of vending equipment. In a traditional sense, an ATM is a type of escrow, where a tangible machine holds an individual’s money and is dispersed to the holder when he or she successfully enters the PIN.
Escrow can also be evaluated in a judicial context. These escrow funds are commonly used to distribute funds from a cash settlement in a class action suit or an environmental enforcement action.
How the Escrow Works:
The escrow is established when the buyer and seller agree to the terms outlined in the escrow agreement. The contractual agreement must establish a description of the merchandise being exchanged, the sale price, the shipping information of the funds and the number of days listed for the buyer’s inspection.
Once the contract is agreed upon, the buyer must submit an available payment option to the escrow holder. When payment is verified, the seller is then authorized to ship the merchandise and submit tracking information to ensure that the buyer will receive the shipment.
The buyer will then establish a number of days for inspection or review and institute an option to accept or reject the delivered merchandise. The escrow will then pay the seller by the method selected and where transaction will be affirmed.

Understanding Finance Calculators

Understanding Finance CalculatorsWhat is a Finance Calculator?

A finance calculator is a common resource made available by all lending institutions, banks, or financial companies. The term “financial calculator” is a broad term used to describe all devices that will evaluate and forecast the fundamentals and pertinent numbers aligned with a loan agreement, an individual’s particular finances, or a number of other financial agreements.
A financial calculator is offered to the general public to streamline an individual or entity’s financial state; the financial calculator will organize an individual’s payments as they coordinate to a specific financing plan or loan obligation.
Benefits of a Finance Calculator
Although a finance calculator can be used for an assortment of financial matters, the most common types of the device are used to organize and elucidate upon an individual’s mortgage, their refinancing plan (if applicable) or the monthly payments of a particular loan.

A finance calculator is a vital resource for many individuals (particularly those who take-out loans) because the device enables an individual to determine the monthly payments on a loan, as well as how each payment affects the principal and the interest portion of the particular loan.
Additionally, a finance calculator will evaluate the expected maturity date of the loan; such a feature enables the individual to appropriately balance their budget as it pertain to their loan obligation. Although these benefits could be realized through a manual approach, the finance calculator streamlines the delivery of such information.
In addition to borrowers, a finance calculator is also utilized by lenders of various industries. For instance, mortgage loan officers and other lending professionals who are responsible for approving or establishing loan offers will use a finance calculator to evaluate the prospective borrower’s ability to repay the loan.
To evaluate a borrower’s ability to repay a loan contract, the lender will enter the specifics of the loan (the maturity date, the attached interest, the amount financed, and the expected monthly payments) against the individual’s monthly income, expenses, occupation and their credit history. When this information is submitted into a finance calculator, the device will organize the individual’s expected ability to meet the loan obligations as it pertains to the prospective borrower’s monthly income and expenditures.
The finance calculator is a simple, yet highly-beneficial tool. Although there are a number of finance calculators, the typical device will ask for the specifics of the individual’s loan agreement (interest rate, term, amount financed etc.), and their monthly income. This basic information may fluctuate based on the type of finance calculator being used; however, these two categories are the primary inputs necessary for a finance calculator.

Common Types of Finance Calculators
•    Car loan finance calculator
•    Mortgage Calculator
•    Refinancing Calculator
•    Basic Loan Calculator

•    Credit Cards and Debt Management Calculator

•    Investment Calculators

•    Retirement Savings and Planning Calculators

•    Personal Finance Calculators

•    Insurance Calculators

•    Savings Calculators

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