Financial Math Answers

Mr Mangena invested an amount of R13890 divided in two different schemes A and B, at the simple interest rate of 14% per annum and 11% per annum respectively. If the total amount of simple interest earned in three years is R5 508. What was the amount invested in scheme B

a truck is used to transport some wood panels. each wood panel is cuboid measuring 2.4m by 1.2m by 1.8cm. the density of each wood panel is 750 kg/m3. the truck can carry 15 tonnes of those wood panels. calculate the maximum number of wood panels that the truck can carry.

Activity: Amortization Payment

4.   UCPB is offering mortgages at 9% interest. What

monthly payments would be required to amortize a loan of P2,000,000 for 15

years?

5. A debt of P40,000 is to be amortized by equal

payments at the end of every quarter for 1 ½ years. If the interest charged is

12% compounded quarterly, find the outstanding principal after each payment is

made. For this item, construct an amortization table.

Activity: Amortization Payment

Cedric purchased a new fishing boat for

P130,000. He made a P20,000 down payment, and financed the balance at his bank

for 7 years. What amortization payments are required every 3 months, at 16%

interest, to pay off the boat loan?

2.Cameron Manufacturing recently purchased a new

computer system for P150,000. What amortization payment is required each month,

at 12% interest, to pay off this obligation in 8 years?

3The Clintons bought a home for P12,050,000.

After a 15% down payment, the balance is financed at 8% interest for 9 years.

(a) What equal quarterly payments will be required to amortize this mortgage

loan? (b) What is the total amount of interest the Clintons will pay on the

loan?

PV of annuity due

5) find the present value of annuity due of 7,000 payable at the beginning of each quarter for six years if the interest rate is 14% compounded quarterly.

6) what is the cash prize of a freezer than can be bought for 7500 a quarter for 2&1/2 if the interest payment is made now and the interest rate is 7%compounded quarterly?

PV of annuity due

3) what amount must be deposited now in order to withdraw 2,000 at the beginning of each month for 3 years, if interest is 12% compounded monthly?

4) the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of each month into a savings account, how much will it be worth in 10 years?b) how much would the account be worth if the payments were made at the end of each month, rather than at the beginning?

PV of Annuity Due

1) if 10,000 must be withdrawn at the beginning of each 3months period for the next 3 years, how much must be deposited now, at 6% compounded quarterly, to yield the annuity payment needed?

2) billy wants 5000 at the end of each 3 month period for the next 6 years. If billy banks is paying 8% interest compounded quarterly, how much must she deposit if she wants the payments at the beginning of each 3 month period?

find the sinking fund payment

6.) cavell manufacturing established a slinking fund to pay off a 100,000,000 bond issue that comes due in 8 years. A) what equal payments must be deposited in the fund every 3 months at 6% interest compounded quarterly in order for cavell to meet this financial obligation ? B) what is the total amount of interest earned in the sinking fund account?

7) the Carmichael hotel has a financial obligation of 10,000,000 due in 5 years. A sinking fund is established to meet this obligation at 12% interest compounded monthly .a) what equal monthly sinking fund payments are required to accumulate the needed amount? B.) what is the total amount of interest earned in the account?

For the following items, find the sinking fund payment

5.) Cassius landscaping buys new lawn equipment every three years. It is estimated that 250000 will be needed for the next purchase. The company sets up a sinking fund to save for this obligation.a) what equal payments must be deposited every 6 months, if interest is 8% compounded semi annually ? B) what is the total amount of interest earned by the sinking fund?

For the following items , find the sinking fund payment

2) Camilla wats to accumulate ₱80000 in 5 years for a trip to hongkong. If her bank is paying 12% interest compounded quarterly, how much must c camilla deposit at the end of each 3 month period to reach her desired goal?

3) what sinking fund payment is required athe end of each month , at 18%. Interest compounded monthly, to amount to ₱40000 in 6 years.

4) Caspar is planning a vacation in bangkok in 4years and will need ₱75,000 for the trip .Caspar decides to set up a sinking fund savings àçcount

For the vacation . He intends to. Make regular payments at the end of each 3month period into the account that pays 6% interest compounded quarterly.what periodic sinking fund payment will allow him to achieve his vacation goal?

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