Financial Math Answers

A customer can pay $900.00 per month on a mortgage payment.
Interest rate is 12% annually compounded continuously, and mortgage
terms is 15 years. Determine the maximum amount the customer can pay within the period.

Marine fisheries is an established company which is looking to expand its fishing interests by purchasing a 100%interest in shark bait.The management of marine fisheries believes that the expected return from the acquisition of shark bait are dependent on the state of the economy. State of the economy.favourable, neutral, unfavorable. Probability of occurrence 0.3,0.4,0.3 .marine fisheries 16%,10%,2%.shark bait 20%,12%,0%.The market 14%, 8%,6%. Book value in millions R12m,R8m and R0. Market value in millions R8m,R12m and R0 Standard deviation of return 5,4%,7,8%and3.2%. Covariance with the market 0.0024 0,0023 and 0.the risk free rate is 15%and the is no company or personal taxation. Required:determine whether marine fisheries should acquire shark bait using the portfolio management theory.

Linda takes out a loan today for $3500.00 with 5% interest compounded quarterly. She plans on paying back this loan with a quarterly payment at the end of each quarter for the next 5 years. Find the size of Linda’s quarterly payment.

Ryan buys some jumpers to sell on a stall.
He spends £160 buying 60 jumpers.
He sells 80% of the jumpers for £12 each.
He then puts the rest of the jumpers on a Buy one get one half price offer.
He manages to sell half the remaining jumpers using this offer.
How much profit does Ryan make?

How many payments will it take Martha to repay a loan of $12 000 by making monthly payments of $350 at the beginning of each month if interest is 9% compounded monthly? When is the final payment made? Give answer in years and months.

Carla plans to invest in a property that after 3 years will yield $1200 at the beginning of each month indefinitely. How much should Carla be willing to pay if alternative investment yields 9% compounded monthly?

What is the market price of a U.S. Treasury bond that has a
coupon rate of 9%, a face value of $1,000 and matures exactly
10 years from today if the required yield to maturity is 10%
compounded semiannually

this year (10 years after i took out my first loan) i check my loan balance. Only part of my payments have been going to pay down the loan; the rest has been going towards interest. I see that i still have $88,536 left to pay on my loan. My house is now valued at $160,000. How much of the original loan have i paid off?

Time value—Annuities Marian Kirk wishes to select the better of two 5-year annuities, C and D. Annuity Cis an ordinary annuity of $2,500 per year for 5 years. Annuity D Is an annuity due of $2,200 per year for 5 years.
a. Find the future value of both annuities at the end of year 5, assuming that Marian can earn (1) 10% annual interest and (2) 20% annual interest.
b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 5 for both the (1) 10% and (2) 20% Interest rates.
c. shows the future value of ordinary and due through time line on the above solutions.

Time value—Annuities Marian Kirk wishes to select the better of two 5-year annuities, C and D. Annuity Cis an ordinary annuity of $2,500 per year for 5 years. Annuity D Is an annuity due of $2,200 per year for 5 years.
a. Find the future value of both annuities at the end of year 5, assuming that Marian can earn (1) 10% annual interest and (2) 20% annual interest.
b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 5 for both the (1) 10% and (2) 20% Interest rates.
c. shows the future value of ordinary and due through time line on the above solutions.