Financial Math Answers

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

an investor puts £5000 in a savings account that pays 10% simple interest at the end of each year. compare how much the investor would have after 6 years if the money was invested for 6 years?

 A credit union has issued a 2 years loan of $6,000. Simple interest is charged 

at a rate of 8 percent per year. The principal plus interest is to be repaid at the 

end of second year. Compute the interest for the 2 – year period. What amount 

will be repaid at the end of the second year.   

State whether the Korean won is stringer or weekend than the rand

Your eccentric uncle died and left you $100,000. However, the will stipulated that the entire amount must be invested in common stocks. Specifically, $50,000 must be invested in a single stock (a one-stock portfolio) and the other $50,000 must be invested in a 100-stock portfolio. You are very risk averse, so you want to minimize the riskiness of each $50,000 investment.

a. Describe the kind of stock you would choose for your single-stock portfolio?

b. What types of stock would you choose the stocks for your 100-stock portfolio?

c. From a practical standpoint, how should you view the riskiness of your single-stock portfolio?

Accumulate ₱ 25,000 for 2 years and 5 months at 6 ½ 3 compounded every two months

Show necessary solutions/explanations to support your answer. 

1. How much is the interest if you loan ₱ 350,000 for one year at a simple interest rate of 8%?

2. Which of the following is also referred as Banker’s rule? Explain your answer.

a. exact interest exact time

b. exact interest approximate time

c. ordinary interest exact time

d. ordinary interest approximate time

e. none of these

3. What is the approximate time from April 8, 1999 to October 25, 1999?

4. How many ₱500 monthly payments can be withdrawn from an account containing 

₱35,000 and invested at 8% converted monthly. The first withdraw takes place in one 

Month.

5. On November 15, 2020, Jose Boliva went to BDO Bank and made a loan of ₱100,000

At 10% ordinary interest for 90 days. What is the maturity value of the loan?

Solve the following problems. Show your solutions to support your answer.

1. At what rate will ₱ 6,500 accumulate to ₱ 27,000 for 3 years and 6 months, if compounded every 5 

months?

2. Accumulate ₱ 25,000 for 2 years and 5 months at 6 ½%, compounded every two months.

3. Briefly explain the difference between a “ 7% compounded monthly for a year” and a “7% simple 

interest for a year.”

The force of interest is given by:

𝛿(𝑡)= {0.08−0.001𝑡 0≤𝑡<3

0.025𝑡−0.04 3≤𝑡<5

0.03 𝑡≥5

Calculate the present value at time 2 of a payment of £1,000 at time 10.

Can you provide me with formats on how can I rotate a 60 club members equally in order that each member gives $50 and collects $100