Financial Math Answers

Questions: 2 329

Answers by our Experts: 2 002

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Search & Filtering

A borrower agrees to repay a loan of $3000 by 15 annual repayments of $500, the first repayment being due after five years. Find the annual yield for this transaction.
On 15 November in each of the years 1964 to 1979 inclusive an investor deposited $500 in
a special bank savings account. On 15 November 1983 the investor withdrew his savings.
Given that over the entire period the bank used an annual interest rate of 7% for its special
savings accounts, find the sum withdrawn by the investor.
The present value of a series of payments of $500 at the beginning of every month years, forever, is equal to $10000. Calculate the nominal annual discount rate compounded monthly.
A perpetuity pays $x at the end of each month. The nominal annual rate of interest compounded monthly is i
(12). Calculate the percentage of increase in the value of this perpetuity
if the nominal annual rate of interest compounded monthly decreases by 10%.
A perpetuity pays $1 at the end of every year plus an additional $1 at the end of every second
year. The effective rate of interest is i = 5%. Find the present value of the perpetuity at time
0.
John uses his retirement fund to buy a perpetuity-due of $20,000 per year based on an annual
nominal yield of interest i = 8% compounded monthly. Find John’s retirement fund.
The present value of a series of payments of $3 at the end of every eight years, forever, is
equal to $9.5. Calculate the effective annual rate of interest.
Select any TWO (2) commercial banks in Malaysia. Based on the current interest rates offered by the banks, calculate the future value of an annuity of RM100,000 made at the beginning of every year for 10 years. Analyse and compare the effect of the interest rates offered by the banks on the total savings.
An asphalt road requires no upkeep until the end of 2 years when P20,000 will be needed for the repairs. After this, P30,000 will be needed for repairs at the end of each year for the next 5 years, then P40,000 at the end of each year for the next 5 years. Find the present value of the upkeep for the 12 years if money is worth 8 ¾%.

Mr. Karim bought 100 shares of Beximo Pharmaceutical Limited (BPL) last year at Tk. 80 each. The share is currently trading at Tk. 100 each. The company declared Tk. 10 a share dividends recently. Mr. Karim has to pay 30% Tax on his income.

Calculate Mr. Karim's after-tax dividend from BPL.


b. Now assume that BPL did not declare any dividends. Mr. Karim realized Tk. 10 a share by selling a part of his holding of BPL shares as homemade dividends. If capital gains is taxed at 30%, find out what would be Mr. Karim's after-tax homemade dividends.


LATEST TUTORIALS
APPROVED BY CLIENTS