金融作业11.docxVIP

Introduction to FinanceMy name:My ID number:Introduction: My uncle asking me to help him to write up a plan for his retirement.The plan is about tha how to enhance their bank savings. My uncle is now 48 years old and is in excellent health.And my aunt is 43 years old and also is in excellent health. Moreover my uncle is working for an electronic company with a monthly salary CNY 9,000 and his wife monthly salary is CNY5.000. Both except that their salary will increase by 5% per year until their retire.In addition my uncle and my aunt plan to retire at the age of 65 but till now,neither one has any saying that is locked in for retirement. Then my uncle not keen to leave money in a bank acount ,beacause of the interest rate is only 3% per year . He hope to the year of rate return higer than the intereste rate per year. My uncle spending will be around CNY 5000 per month , in consideration inflation . Follow this situation , I already do a investment plan help my uncle to manage finance.Background :According to my uncle and his wife retirement age to 65 ,i calculate the number is Calculation process is:PV1=9000*12=108000 ,FV=108000*[(1+5%)+(1+5%)2+.(1+5%)3......+(1+5%)16]=1928000PV2=5000*12=60000, Fv=60000*[(1+5%)+(1+5%)2 +(1+5%)3+.....+(1+5%)21]=162000I Should recommend the common stock to my uncle for his investment tool .From an outside investor’s point of view , an important feature of an investment in the equity of a corporation is its equity of a corporation is its liquidity . My uncle spending will be around CNY 5,000 per month, in consideration to inflation. So he is saving many spare cash and correspond the liquidity feature. Although stock of risk more than bond of risk ,it is return back is higer than bond .This is deposit bank obtain number of the mony:Pv = C*(1-n)= 108000* (1- )=135659.9 I should take into consideration the one prevailing constant in any stock market security – risk and uncertainty. Understanding that risk and uncertainty are the key fac