Financial Product - Excel in Daily Money Management
Autor: Ellie Cheung • April 17, 2018 • Course Note • 2,695 Words (11 Pages) • 1,099 Views
Hang Seng Management College
2016/2017
Semester 2
AMS1360
Excel in Daily Money Management
[pic 1]
Tutor: Zel Tsz Fung Stanley
Class: L03
Submission Date: 27 April, 2017
Group ID: 4
Group Members:
s136354Lau Wai Hin
s146653 Ng Ka Ming
s146678 Pang Yee Ching Kennis
s147516 Wong Man Kong
s166109 Chin Kwan Yu
Introduction:
Financial product is a contract between two agents stipulating movements of cash now and in the future which include personal loans, car loan, insurance etc. The interest rate, amount of repayment can be different for a same financial product from different banks or financial institutions. This paper aims to compare different financial products from various banks and financial institution as to analyze the differences on the several important facts such as interest rate, repayment, loan period etc. and try to make suggestion on choosing financial products offered by which banks or financial institutions from the perspective of borrower. We will compare personal loan from three territories which are Hong Kong, USA and United Kingdom. Meanwhile, we will also compare car loan and personal loan.
Project Objective:
As to have better understanding on several financial products with various purposes and characteristics, this paper will first compare the financial products offered by different banks or financial institution. Provided with detailed calculation, the characteristics can be analyzed by finding the total cost and interest rate. With these information, conclusion will be drawn on which financial products suit users most.
- Personal Loan
Objective: To analyze the how the monthly flat rate and APR will affect the monthly repayment if the loan period, loan amount for different banks are all the same as to make suggestion the the borrower on which loan should be borrowed.
Scenario: Alan is an international businessman, he is planning to start a new business but he is lack of capital at this moment so he decided to borrow loan from banks. He is considering start his new business in Hong Kong, USA or United Kingdom. He will make his decision by checking out which place’s bank can provide him a personal loan with lowest interest rate and monthly repayment.
Hang Seng Bank(HK) | In HKD 1USD=7.77669HKD 1GBP=9.94532HKD | U.S. Bank(USA) | In USD 1HKD=0.128591USD 1GBP=1.27940USD | Barclays(UK) | In GBP 1HKD=0.100505GBP 1USD=0.781592GBP |
Loan Amount | HK$194,378.75 | Loan Amount | USD$25000 HKD$194,378.75 | Loan Amount | GBP£19507.63 HKD$194,378.75 |
Monthly Flat Rate | 0.21% | Monthly Flat Rate | 0.00% | Monthly Flat Rate | 0.00% |
Loan Period | 48 | Loan Period | 48 | Loan Period | 48 |
Monthly Repayment | HK$4,457.75 | Monthly Repayment | USD$596.057109 HKD$4634.433 | Monthly Repayment | GBP£447.4229485 HKD$4458.231195 |
Interest Rate per Month | 0.40% | Interest Rate per Month | 0.56% | Interest Rate per Month | 0.40% |
APR | 4.89% | APR | 6.99% | APR | 4.90% |
Assume he want to borrow USD$25000 which is HKD$194,378.45 and GBP£19507.63, the monthly flat rate of Hang Seng Bank is 0.21%, 0% for both U.S. Bank and Barclays, 6.99% of APR for U.S. Banks, 4.89% for Hang Seng Bank and 4.90% for Barclays.
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