Financial Math Answers

Assume that 4 years from now you will need $1,000. Your bank compounds interest at an 8% annual rate.

1)what would your balance four year from now be if the bank quarterly compound rather than semi annual and annual compound

2) suppose u depoist the $1000 in four payments $250 each at the year . How much would you have in account in 4 year based on 8% annual compounding

Which of the following options would provide the best return on your investment of R50 000 over a period of nine years if it is 7% compounded

Select one:

1.

Annually

2.

Quarterly

3.

Quarterly

4.

Semi-Annually

5.

Daily

(2) Compare the following three loans: a loan charging an annual effective rate of 9%, a loan

charging 8 3

4% compounded quarterly, and a loan charging 8 1

2% payable in advance and

convertible monthly. Of the three loans which one gives the most favorable interest rate.

Edwill just purchased a new home costing R1107900,00 by paying R120000,00 cash on the purchase date, and agreeing to make payments at the end of the following eight years for the remainder owed; the first payment is due one year after the purchase date. The interest rate is 7,4 % per annum,compounded yearly. Considering the amortisation schedule, the percentage rounded to two decimal places, of the total payments made the first two years that will go forward repayment of interest, is

Network Systems is introducing a new network card. Suppose Network Systems knows its fixed costs are $600,000, its variable costs are $500 per card, and it must sell 15,000 cards to break even the first year. What is the minimum price per unit it should charge?

Describe the correlation coefficients using the terms strong, moderate, or weak and positive or negative. r = 1.1

Describe the correlation coefficients using the terms strong, moderate, or weak and positive or negative. r = -0.51