Financial Math Answers

Find the amount of interest that a person will earn if he invests an amount of R9000 for 30 months, at an interest rate of 6% per annum, with the interest compounded semi-annually. (Leave your answer as an expression in exponential form as you may not use a calculator.)

R200000.he invested the full amount in a fixed deposit that pays interest at 7%p.a compounded monthly. The maturity date for his investment is 31December 2010.
The following annaul inflation rates have been predicted for the given calendar years
2008:8,3%
2009:8,5%
2010:8,7%
Without use of interest tables calculate the net present value for his investment.
Based on your npv calculations what is the implication of investing money when the nominal interest rate on fixed deposit is lower than the discount rate ?

For the compound interest loan whose terms are given below, find the future value, or the amount due at the end of the specified time.

Principal: $4000
Interest rate: 5.4%
Compounding: Daily
Time: 3.5 years


Future value: $

Tyrone’s hourly wage is $18 and his net pay is 72% of his earnings. Tyrone spends about $1,800 on his monthly expenses. If Tyrone works 40 hours per week and has no other sources of income, what is his total monthly cash inflow? (Hint: Assume that there are 4 pay periods per month.)

1. At what compound interest rate per annum must money be invested if the accrued amount must treble in ten years and interest is calculated monthly?

2. At what period of time will R2500 double if the interest is calculated half yearly as 11% per annum?

You have borrowed $160,000 to buy a house. The interest rate on the mortgage is 5.75% APR. You make a payment of $848 each month. What is the balance you still owe after two years?

You deposit $100 each month in a retirement fund that pays 6% APR, compounded monthly. What is the total value of the fund after 30 years?

When you were born, a rich aunt put $4000 in a college fund. The fund pays a consistent 8% APR compounded quarterly (four times per year). What is the balance of the fund when you turn 18 years old?

Hey payday loan company charges a $60 fee for a $500 payday loan that will be repaid in 15 days. Treating the fee as interest paid what is the equivalent annual interest rate? round to the nearest percent

How do I calculate the value at risk given a discrete distribution?