Financial Math Answers

A company is due to receive a payment of £500,000 from a customer in 6 months’ time. To smooth its cashflows, the company would prefer to receive the payment immediately, and has agreed to transfer its entitlement to this payment to a third party (a discount house) in return for an immediate payment calculated using a rate of commercial discount of 16% per annum. How much will the immediate payment made by the discount house be?

Your mother committed to present you with a car as a wedding gift after 5 years from now. The car will cost Tk.14 lakh at that time. Your mother is planning to accumulate the fund by depositing an equal amount of money in a bank account bearing 13% interest. How much should your mother deposit in the bank account? Assume that a deposit should be made at the beginning of the period. The deposit should be made monthly.

Future value of ordinary annuity

beatrice deposits 4,500 at a month end at the end at an interest rate 12% compounded monthly

how will she have in her account at the end of two years and four months?

Future value of ordinary annuity

what is the future value of an annuity if the size of each payment is 2,500 payable at the end of each quarter for five years at an interest rate of 16% compounded quarterly?

Future value of ordinary annuity

the bethel hardware store has been in business for a few years and is doing very well. The owner has decided to save for a future expansion to a second location. He invest 10,000 at the end of every month at 12% interest compounded monthly

(a) how well will be available for the second store after 2&1/2 years?

(b) how much would be in the account of the owner of the hardware saved for 5 years.

Future value of ordinary annuity

Bambi is planning for her retirement. She deposits 300,000 at the end of each year into an account paying 5% interest compounded annually

(a) how much would the account be worth after 10 years?

(b) how much would the account be worth after 20 years?

(c) when Bambi retires in 30 years , what will be the total worth of the account?

(d) If Bambi found a bank that paid 65 interest compounded annually, rather than 5%,how much more would she have in the account after 30 years.

future value of ordinary annuity

bab savings and loan is paying 6% interest compounded monthly. How much will 1000 deposited at the end of each month be worth after 2 years?

Future value of annuity

balbina invested 2,500 at the end of every 3-month period for 5 years?

future value of ordinary Annuity

metrobank is paying 8% interest compounded quarterly. Find the future value 10,000 deposited at the end of every three months for 6 years

Compound amount

find the difference between investment (a) and (b) 150,000 is invested for five years at 8% compounded monthly (b) 150,000 is invested for five years at 8% simple interest