Financial Math Answers

Kmax Ltd is paying a dividend of sh 12.00 per share currently. The dividend that the company can pay in the subsequent years is expected to decline at the rate of 4% every year in perpetuity. The capitalization rate of the company is 15%. Calculate the intrinsic value of the company’s ordinary share. 

Moshe will need R145 000 in three year's time, to open bakery. He immediately start to make monthly deposit into an account earning 11.05% interest per year, compounded monthly. Moshe's monthly deposit is

. Find the number of years it would take for R748,00

to increase by 72% if it is invested at an interest rate of 7,9% per annum, compounded semi-annually

Questions 6 and 7 relate to the following situation: Bonita intends to open a small fabric shop and borrows the money for it from her aunt Magda. Bonita feels that she will only be able to start repaying her debt after three years. Bonita will then pay aunt Magda R105 000 per year for five years. Money is worth 19,5% per year.

Mike wants to buy a scooter that costs 10000, but he cannot afford to buy it cash. He opts for the hire purchase agreement, which requires a 13% deposit and 24 equal monthly instalments at an interest rate of 15% per annum, compounded monthly. How much will his deposit be?

Calculate the total amount that he still must pay after the deposit.

Calculate the monthly instalments

Moshe will need R145 000 in three years’ time, to open a bakery. He immediately starts to make monthly deposits into an account earning 11,05% interest per year, compounded monthly. Moshe’s monthly deposit i

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

What is the total interest made after 4 years on a simple interest loan that accumulates 13% each year and has original amount was $1350.

Sonya has a $363,000 mortgage at 3.41% compounded monthly with end of month payments of $3,340.00.

1) How many payments will Sonya have to make to amortize this loan?

 (rounded to the next higher whole number)

2) How much will her final mortgage payment be?

$ (enter a positive value)

Betty wants to invest a monthly sum of money in order to accumulate R100000 in seven years. How much must be the deposit monthly if her bank offers her an interest rate of 6% per annum compounded monthly? What if she was given an interest rate of 8%? Calculate