Financial Math Answers

A merchant purchased a line of handbags for R172,00 each. She want to offer a 14% discount off the listed selling price and still make a 24% profit. The price that she should mark on the label is?

You are planning to buy a recondition F Premio car and for this purpose you have taken loan 1.5 million from Mutual

Trust Bank. Loan repayment time is 10 years. Assume 9% per year interest rate is applied. If you pay back the loan in ten

equal annual (per year) installments, how much will this installment be?

book store purchased children’s books from the publisher in the amount of $1,550,000 with terms of 7/15, n/30, ROG. The goods arrived on November 12 and the invoice book store received is dated October 02. There is a late fee of 4%. How much discount can be availed if the book store decides to pay on November 17.  

The following information is given with respect to the ratio's of two companies

Aman Ltd Roger Ltd

Current ratio 2:01 1.60:1

Quick Ratio 1.35:1 1:01

Return on investment 15% 13%

Debt Equity Ratio 2.5:1 1:01

a. Define the concepts of Current and Quick ratio’s and also, reflect on your understanding

towards the financial performance of the companies by looking to the above information.

b. Define the terms- Return on Investment and Debt equity ratio and also, reflect on

your understanding towards the financial performance of the companies

determine the points of discountinuty of the function f and naturvof discountunuity at each of those points f(x) = -x square when x less then equal to 0 , 4-5x , 3x-4x square -12x+2x

Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by

arranging gift hampers for the customer's loved ones. The inflows arises from the sale of

gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is

confused on how to record these inflows. She would like to understand from you about

the concepts Revenue from operation and other income, so that she can record the

information so as to prepare the profit and loss statement of the enterprise. Define, share

examples, and elaborate on your understanding towards the terms Revenue from

Operation and Other Income

Org Pvt. Ltd. is considering two mutually exclusive capital investments. The project’s expected net cash flows are as follows:

Expected Cash Flows

Year Project A Project B

0 -400 -575

1 95 150

2 110 200

3 118 250

4 125 275

5 140 230

6 150 180

a. If you were told that each project’s cost of capital was 10%, which project should be selected using the NPV criteria?

b. What is each project’s IRR?

c. What is the regular payback period for these two projects?

d. What is the profitability index for each project if the cost of capital is 12%?

Note - Proper calculations required in each step

From 1992 to 1995, a certain country experienced a yearly inflation rate of 229%. Determine the price of a $2.22 fast food meal after 8 years at a 229% inflation rate.

A student borrows $4000 at 15% for 9 months to pay tuition. Find the total amount due using simple interest.

Using the formula for computing future value using compound interest determine the value of an account at the end of 6 years if a principal amount of $12,000 is deposited to an account at an annual interest rate of 6% and the interest is compounded quarterly.