Assessment 1
Value: 5%
Due date: 09-Apr-2015
Return date: 18-Apr-2015
Length: 2000
Submission method options
Alternative submission method (Turnitin)
Task
Question 1 - 20 marks
-In recent years, an increasing number of consumers are seeking financial advice from financial planners-. Explain why this trend is occurring.

Question 2 - 20 marks
Tom, a qualified accountant, started his own financial planning services after a successful career in the accounting profession for twenty years. His business grew rapidly since opening three years ago. He receives regular invitations from numerous clients to present talks on the products and services offered by his business. Many of his clients are extremely kind to Tom, offering gifts and free accommodation over the value of $5,000. He also receives commissions based on the volume of investment products recommended to his clients.
In light of the recent development in the financial planning industry, discuss the effect of applicable laws and code of practice which may affect Tom's business.

Question 3 - 20 marks
You are the chairperson of the investment fund for the Eastern Football League. You are asked to set up a fund of semiannual payments to be compounded semiannually to accumulate a sum $100,000 after 10 years at an 8 percent annual rate (20 payments). The first payment into the fund is to occur six months from today, and the last payment is to take place at the end of the 10th year.
a. Determine how much the semiannual payments should be (round to whole numbers.) On the day after the fourth payment is made (the beginning of the third year) the interest rate will go up to a 10 percent annual rate, and you can earn a 10 percent annual rate on funds that have been accumulated as well as all future payments into the fund. Interest is to be compounded semiannually on all funds.
b. Determine how much the revised semiannual payments should be after the rate change (there are 16 payments and compounding dates). The next payment will be in the middle of the third year. (Round all values to whole numbers.)

Rationale
This assessment is designed to:
• assist you to develop your leaning through discussion of the principles covered in Topics 1-4 of the subject;
• allow you to demonstrate your understanding and knowledge of the assigned topic areas;
• develop your ability to communicate well in writing.