Financial Math Answers

A father wants to be accumulated $25000 for his son's college education. The son will admit to a college after 15 years from now. The bank pays 12% interest compounded quarterly, how much money should be deposited now in the bank by the father?

Mr. Jhon will receive $7500 a year for the next 15 years from Mutual Trust Bank. If an 9% interest is applied, what is the current value of the future payments?

The cost of new machine will be $100000 after 12 years. In that time the old machine can be sold for $5000 as salvage value. What amount should be retained out of profits at the end of each year accumulate at C.I at 5% P.A?

Calculate the present value of each of the following cash flows using a discounting rate of 12%
a. $6000 cash inflow at the end of each of the next 6 years.
b. $6000 cash inflow at the beginning of each of the next 6 years.

The cost of new machine will be $100000 after 12 years. In that time the old machine can be sold for $5000 as salvage value. What amount should be retained out of profits at the end of each year accumulate at C.I & P.A?

Based on the Consumer Price Index, the rate of inflation in the United States between 1980 and 2011 was about 3.3% per year. What salary in 1980 would be equivalent to a $51,000 salary in 2011? Round your final answer to two decimal places.

A wagon is purchased on installment basis, such that Tk. 5,000 is to be paid on the
signing of the contract and four yearly installments of Tk. 3,000 each payable at the
end of the first, second, third and fourth year. If interest is charged at 5% per annum,
what would be the cash down price?

A loan of $1400 is due in 1 year at a simple interest rate of 12%. Partial payments of $400 in 2 months, $25 in 6 months, and $700 in 8 months are made
A. Construct a timeline clearly showing the timing of the debt and all repayments.
B. Determine the balance due at the end of the 12 months using the merchant rule
C. Determine the balance due at the end of the 8 months using the declining balance method

Write the following statement in form of equetion

1. What number increased by 32 yields 125?
2. 5 more than six times a number, plus 3 times that number, is 25?
3. The cost of gallons at R1.33 per gallon equal R34.40
4. What number less 12 is the average of 10,15,an d17?