Financial Math Answers

The UFS estimates that they will need $450000 in one and a half year's time and another $720000 in two and a half years' time to cover the expected cost of providing each registered student with a Kovsie dairy. If interest is calculated at 6.4% per annum, compounded semi-annually, how much must the UFS invest today in order to cover the expected future costs?

$2000 is deposited into an account for n years at an interest rate of 16% per annum compounded quarterly. After two years the interest rate changes to 13% per annum compounded monthly. At the end of the term the value of the investment is $4200. Calculate the value of n.

1) Sue and Bob recently purchased a brick house for $150,000. They financed that amount at 8
percent for 30 years. The tax rate in their area is 71.57 mills and the rate of assessment is 40
percent. They purchased a homeowners policy for the purchase price of the house. The fire
protection in the neighborhood is rated class 9. For the month of July, they recorded the
following: $69.20 for electricity, $44.85 for telephone, $39.95 for cable TV, $18.80 for water,
and $74.65 to repair a door. They have a combined monthly net income of $5,400. What is their
monthly mortgage payment? What is the monthly insurance premium? What are their monthly
taxes? What was their total monthly housing cost for July? Is it within the FHA
recommendation?

€250 is invested in a savings account. The nominal rate value of interest convertiblemonthly for the first three months is 18%,and the nominal rate of interest convertible quarterly for the next 9 months is 20%.
How much is in the account at the end of the year

After a couple of years in Canada, you decide you want to start contributing to your retirement. How much money do you need to contribute at the end of each year for 37 years to accumulate to $213,000 in the RRSP account if interest is 8.04% compounded quarterly?

A 6-month promissory note dated April 12, 2020 is made at 5.2% for $2,800. What is the present value of the note 40 days later if money is worth 7%? (Note: Assume there are 183 days of interest on 6 months here.)

1.1 calculate the break-even quantity. (3 marks) 1.2 calculate the target sales value using the marginal income ratio, if a profit of r600 000 is desired. (3 marks) 1.3 the sales manager made the following proposal to increase profitability: decrease the selling price by r40 per unit and increase advertising expense by r24 000 with the expectation that sales volume will increase by 10%. should the sales manager’s proposal be accepted? motivate your answer with the relevant calculations.

Jeremy purchased a machine for $21,000 for his company. He paid 5.00% of this amount as a down payment and financed the rest at 6.92% compounded monthly. He paid $1,125 at the end of every month to settle the loan.

a. What was the principal portion of payment number 4?


b. What was the interest portion of payment number 4?

During the year ended 30th June 2012 a company's sales were £498,400. As at 30th June 2011 the cost of its inventory was £98,200 and its trade payables £124,600. As at 30th June 2012 its cost of inventory was £74,200 and trade payables £114,800; while it paid £294,800 to its suppliers during the year ended 30th June 2012.. Calculate the company's inventory turnover.

Jason's full social benefit is $2,101 per month . he started collecting social security at age 63 . estimate his monthly benefit if it is reduced by 25%