FINANCIAL MATHEMATICS

Financial Mathematics & Business Statistics: Coursework



Financial Mathematics & Business Statistics: Coursework

Answer 1

Since the company is facing a decline in its products sales due to the financial crisis in the country and in the market. The financial condition of the country has affected its trade. The scenario given forward by the analyst in the finance department is self explanatory. Keeping in view the financial crisis and the demand of the company's products, it has to control its stock ordering system and keep reviewing it from time to time. Stock control is also famously known as inventory control, as it shows the amount of stock available with the company at a time and the way it keeps a record on its stocks. From every stock if it is in the form of a raw material, the company uses it and produces finished goods (stocks.about.com). Since the company is deciding how much stock to be ordered and kept, since there is a crisis situation going on the company should order according to the demand forecast that is 25,000 made by the analyst. Ordering more or less than this can be a problem for the company. The company should only keep according to the business size and operations. In a crisis situation if the demand of the company's product is less but the company maintains stock in a bulk than it would result in a loss for the company. However; the probability of slow recovery of the crisis situation is more which shows a slight increase in the demand and eventually sales of the company (www.infoentrepreneurs.org).



The company maintaining stock order system or inventory system according to the situation in the country or in the market whether its crisis or better situation, the company should maintain stock according to the demand in a situation. This will help them in maintain their cost plus an adequate inventory management or stock is better for the country rather than more or less than the adequate level.

Answer 2

Gareth and Victoria can borrow a 5 year plan from the bank having a mortgage rate of 3.79 % which is fixed. Since it is seen that they earn almost 100,000 pounds plus per year and get some bonuses and have some savings as well through which they can buy a house in the locality they want to. They can get a 2 bed apartment since they don't have any extended family it would be enough for them and can afford it.

Both of them can borrow 300,000 pounds from the bank as mortgage loan for a period of 5 years. The rate is less plus they can pay off this amount peacefully and can also obtain an apartment of two bed. For both, Gareth and Victoria the best is house mortgage obtained from bank which is a repayment mortgage - fixed rate for 5 years of 3.79 %. After that period, the rate reverts to the bank's standard variable rate, which currently is ...