Financial Math Answers

A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the Find the loan outstanding after making 20 payments?
Find the principal repaid in the 21st payment?

Fill out the loan amortization schedule for the first 5 loan payments. What do you notice about the composition of the payment amount?
balance at J12=9% p.a. to be amortized over 30 years with monthly payments.

Find the value of the mortgage on their house?
Find the value of the monthly payment?

Suppose that after making 50 payments, the interest rate changes to J2=9% p.a.

Convert the interest rate J2=9% to J12 equivalent
Assuming that the family seeks to accept the change in interest rates, what would be their new payment based on the new interest rate?
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?

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

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?

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)

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.

Sara is considering two offers to purchase a car. Offer A is for $35000 consisting of an immediate $10,000 down payment with the $ 25,000 balance payable 1 year later. Offer B is for $33,500 made up of a $5,500 down payment and the $ 28,000 balance payable in 6 months. a. If money can earn 4% what is the current economic value of each offer? b. Other things being equal, which offer should Sara accept? What is the economic advantage of the preferred offer over the other offer?

Question #119119
Running a small pen shop in Vancouver you purchase 100 boxes of blue pens from Ink Inc. at a trade discount of 20%. You receive an invoice for your order on March 15 in the amount of $2050 with terms of 2/10, n/30. You completely pay the invoice on March 25. Your accountant has suggests that you should incorporate unit overhead costs of 30% of cost to all of your stock. Also, you should set the price so that operating profit is 20% of cost, if the stock is sold at a 25% discount. What is the regular selling price of a box of fancy pens?

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?

Running a small pen shop in Vancouver you purchase 100 boxes of blue pens from Ink
Inc. at a trade discount of 20%. You receive an invoice for your order on March 15 in the
amount of $2050 with terms of 2/10, n/30. You completely pay the invoice on March 25.
Your accountant has suggests that you should incorporate unit overhead costs of 30% of
cost to all of your stock. Also, you should set the price so that operating profit is 20% of
cost, if the stock is sold at a 25% discount. What is the regular selling price of a box of
fancy pens?

. Sara is considering two offers to purchase a car. Offer A is for $35000 consisting of an
immediate $10,000 down payment with the $ 25,000 balance payable 1 year later. Offer
B is for $33,500 made up of a $5,500 down payment and the $ 28,000 balance payable in
6 months.
a. If money can earn 4% what is the current economic value of each offer?
b. Other things being equal, which offer should Sara accept? What is the economic
advantage of the preferred offer over the other offer?