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Financial Math
Explain in a paragraph of about 100-150 words when and why would a bond be sold on a premium or discount? You may use graphs, equations, or other aids to assist your explanation.
Financial Math
I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments.
A. Find the value of the mortgage on their house? (1 mark)
B. Find the value of the monthly payment? (3 marks)
C. Find the loan outstanding after making 20 payments? (4 marks)
D. Find the principal repaid in the 21st payment? (5 marks)
III. Suppose that after making 50 payments, the interest rate changes to J2=9% p.a.:
A. Convert the interest rate J2=9% to J12 equivalent (2 marks
B. Assuming that the family seeks to accept the change in interest rates, what would be their new payment based on the new interest rate? (5 marks)
C. Assuming that the family seeks to continue their initial monthly payment calculated in part I, how many full payments would be required to pay off the loan and what would be the final concluding smaller payment one period later? (9 marks)
A. Find the value of the mortgage on their house? (1 mark)
B. Find the value of the monthly payment? (3 marks)
C. Find the loan outstanding after making 20 payments? (4 marks)
D. Find the principal repaid in the 21st payment? (5 marks)
III. Suppose that after making 50 payments, the interest rate changes to J2=9% p.a.:
A. Convert the interest rate J2=9% to J12 equivalent (2 marks
B. Assuming that the family seeks to accept the change in interest rates, what would be their new payment based on the new interest rate? (5 marks)
C. Assuming that the family seeks to continue their initial monthly payment calculated in part I, how many full payments would be required to pay off the loan and what would be the final concluding smaller payment one period later? (9 marks)
Financial Math
I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments.
A. Find the value of the mortgage on their house? (1 mark)
B. Find the value of the monthly payment? (3 marks)
C. Find the loan outstanding after making 20 payments? (4 marks)
D. Find the principal repaid in the 21st payment? (5 marks)
II. Fill out the loan amortization schedule provided in the solution template for the first 5 loan payments. What do you notice about the composition of the payment amount? (6 marks)
A. Find the value of the mortgage on their house? (1 mark)
B. Find the value of the monthly payment? (3 marks)
C. Find the loan outstanding after making 20 payments? (4 marks)
D. Find the principal repaid in the 21st payment? (5 marks)
II. Fill out the loan amortization schedule provided in the solution template for the first 5 loan payments. What do you notice about the composition of the payment amount? (6 marks)
Financial Math
I. Find the present and future value of $1000 received every month end for 20 years if the interest rate is J12 = 12% p.a. (5 marks)
II. Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years. (5 marks).
III. John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account? (10 Marks)
II. Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years. (5 marks).
III. John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account? (10 Marks)
Financial Math
1.A bill for $21900 drawn on July 10 for 6 months was discounted for $21720 at 5% p.a.On what date was the bill discounted.
2.If the B.G. on a bill 146days hence at 6% p.a. is $360,find T.D.&B.D.
3.If the T.D. on a bill of $660 is $110.The rate of interest is 4%.In how much time will the bill be due?
4.Find B.D. and discounted value of a bill worth $600 drawn on May 15,2005 for 3 months and discounted on july 20, 2005 at 5%p.a.
2.If the B.G. on a bill 146days hence at 6% p.a. is $360,find T.D.&B.D.
3.If the T.D. on a bill of $660 is $110.The rate of interest is 4%.In how much time will the bill be due?
4.Find B.D. and discounted value of a bill worth $600 drawn on May 15,2005 for 3 months and discounted on july 20, 2005 at 5%p.a.
Financial Math
Sunil,who holds a bill worth $40000,gives the bill to a bank with instructions to accept payment at maturity.If the bank charges 1% commission,Find the amount received by sunil
Financial Math
A loan of R100 000, granted at 8% p.a. compounded monthly is to be repaid by regular equal monthly payments over a period of five years, starting one month after the granting of the loan.
The interest portion of the 23rd payment is equal to:
The interest portion of the 23rd payment is equal to:
Financial Math
Suppose that after making 50 payments, the interest rate changes to J2=9% p.a.:
A. Convert the interest rate J2=9% to J12 equivalent
B. Assuming that the family seeks to accept the change in interest rates, what would be their new payment based on the new interest rate?
C. Assuming that the family seeks to continue their initial monthly payment calculated in part I, how many full payments would be required to pay off the loan and what would be the final concluding smaller payment one period later?
A. Convert the interest rate J2=9% to J12 equivalent
B. Assuming that the family seeks to accept the change in interest rates, what would be their new payment based on the new interest rate?
C. Assuming that the family seeks to continue their initial monthly payment calculated in part I, how many full payments would be required to pay off the loan and what would be the final concluding smaller payment one period later?
Financial Math
I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments.
A. Find the value of the mortgage on their house?
B. Find the value of the monthly payment?
C. Find the loan outstanding after making 20 payments?
D. Find the principal repaid in the 21st payment?
A. Find the value of the mortgage on their house?
B. Find the value of the monthly payment?
C. Find the loan outstanding after making 20 payments?
D. Find the principal repaid in the 21st payment?
Financial Math
I. Find the present and future value of $1000 received every month end for 20 years if the interest rate is J12 = 12% p.a.
II. Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years.
III. John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account?
II. Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years.
III. John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account?
