Financial Math Answers

An unrecorded credit memo for collection of a note should be?

The Tanners have received an $8000 gift from one of their parents to invest in their child’s college education. They estimate that they will need $20,000 in 12 years to achieve their educational goals for their child. What interest rate compounded semiannually would the Tanners need to achieve this goal?

Find the rate of interest required to achieve the conditions set forth:

A = $5000; P = $1250; t = 12 years; interest is compounded quarterly.

if Marwa has a 1,00,000 bond with a 7% interest , how much will she has in 8 years.

You are saving to pay for your children’s university costs in 20 years’ time. In the first year, your payment is R3 600, after which your yearly payments increased by R360 each year. If the expected interest rate per year is 10%, the amount that you expect to receive to the nearest rand on the maturity date will be [1] R213 030. [2] R340 380. [3] R412 380. [4] R484 380. [5] none of the above

An amount of R5 500 is invested for a period of 4 years in a savings account. For the first year, the investment grows at a simple interest rate of 11% p.a. and then at a rate of 12,5% p.a. compounded quarterly for the rest of the period. Determine the value of the investment at the end of the 4 years.

Show that the total interest paid on the amortization of a loan with leveled monthly payments K for n years at an interest rate of i% per annum is equal

Explain the following terms with appropriate examples: (a) Equity forwards. (b) Currency forwards.

Sam is looking to buy his first flat, and has R15 000 in cash savings which he will use as a deposit. He has viewed a flat which is on the market for R250 000, and he would like to work out how much the monthly repayments would be. He will be taking out a 30 year mortgage with monthly repayments. The annual interest rate is 11%.