Financial Math Answers

You have Tk. 1,00,000 to invest. If you can earn 9% interest, about how long does it take for

your Tk. 1,00,000 investment to grow to Tk. 2,00,000?

Find the accumulated amount after 4 years if $1000 is invested at 6% per year compounded (a) daily (assume a 365-day year) and (b) continuously...Find the accumulated amount after 4 years if $1000 is invested at 6% per year compounded (a) annually, (b) semiannually, (c) quarterly, (d) monthly, and (e) daily.

Find the effective rate of interest corresponding to a nominal rate of 6% per year compounded (a) annually, (b) semiannually, (c) quarterly, (d) monthly, and (e) daily. In 1968 Truth in Lending Act passed by Congress requires that the effective rate of interest be disclosed in all contracts involving interest charges, giving consumers a common basis for comparing the various rates quoted by different financial institutions.

ZAMBEEF ltd wanted to know their net present value of cash flow if they invest 100000 today. And their initial investment in the project is 80000 for the 3 years of time and they are expecting the rate of return is 10 % yearly. From the above available information, calculate the NPV.

What is an annuity? 2. Differentiate between ordinary and due annuities. 3. Define an amortised debt. 4. Discus sinking fund.

A lon of 250$ is made for 9 months at a simple interest rate of 10% annum. What is the interest charge? What ammount is due after 9 month?

Find the present value of a simple perpetuity of P10,000 payable semi-annually if the interest rate is 2% per six months and the first payment is due (a) six months from now and (b) now.

Find the present value of a simple perpetuity of P10,000 payable semi-annually if the interest rate is 2% per six months and the first payment is due (a) six months from now and (b) now.

You buy a computer directly from the manufacturer for R7332,00 and agree to repay it in equal instalments over three years at the end of each month, starting one month from now. The interest rate is 10,7% per year, compounded monthly. How much interest will you pay in total?

Sefiso’s cost for renting a stand at a market is R2 657,00 for the month. His cost is calculated as 9,5% for

the first R11 000,00 of his income and 13% for his income in excess of R11 000,00. Which of the following

equations best models, i, Sefiso’s income for the month?

[1] (0,095 + 0,13)i − 11 000,00 = 2 657,00

[2] 0,13i − 0,095(11 000,00) = 2 657,00

[3] 0,095(11 000,00) + 0,13i = 2 657,00

[4] 0,095(11 000,00) + 0,13(i − 11 000,00) = 2 657,00