Financial Math Answers

An account pays interest at a nominal rate of 11% .Find the effecrive annual yield if interest is compounded monthly?

A couple of FEB’s 3rd year students decided to make some money by offering tutorial class to their juniors in first and second year. The seniors rented a room for RM300 for 3 hours from the faculty, and developed tutorial module for a few courses. The cost of printing the module handouts is RM5 each, and the tutor is paid RM25 per hour, for a total of RM75 for each tutorial session.

a. If students (junior) are charged RM20 per pax to attend the tutorial session, how many of them must enroll for the 3rd year students to break even?

b. If students (junior) are charged RM17 per pax to attend the tutorial session, how many of them must enroll for the 3rd year students to not having a loss?

c. A smaller room is available at the faculty for RM200 for 3 hours. The 3rd year students are considering this possibility. How would this affect the break even point? Use RM20 per pax as tutorial fee.

   You are given the following data for the year 2016 of XYZ Co. Limited

Variable cost              600,000

Fixed cost                  300000

Net profit                   100,000

1000,000

Required, Find out:

a)    Break-even point

b)    P/V ratio

c)    Margin of safety

d) Draw a break even chart showing contribution 

Determine the present value of INR 2500 invested today assuming a rate of return of 10%. Define the concept of Present value. Compute- the Present value received one year from now, received at the end of 5 years, received at the end of 10 years. Discuss with reason, which of the three value, is the lowest one

On his 40th birthday ofentse decides he will buy a bike trailer for his 50th birthday. he estimates that it will cost him 48 000 when he turns 50.he starts saving immediately each month paying an amount into an account earning 8.58% interest per year ,compounded monthly the monthly amount payment is

1.592,95

2.597,19

3. 252,18

4. 253,99

Fatu took out an endowment policy. the first annual payment was RX whereafter it increased yearly by 1700.after 20 years the policy paid out 1 005 962.the applicable yearly interest rate is 10% the value of x is approximately

1. 11 816

2. 17 564

3. 6 500

4. 564

Lesedi buys a house and make a down payment of 16% of the price of the house. for the remaining amount,she manages to secure a loan at an interest rate of 12.05% per year,compounded monthly for a period of 20 years her monthly her payment is 18556.84

A..The size of the loan ( to the nearest Rand is)

1. 4 453 642

2. 1 680 000

3. 2 167317

4. 1 338320

B.. The down payment is

1. 213 411

2. 320 00

3. 346 771

4. 268 800

The directors of Thor Limited have appointed you as their financial consultant. They are considering new investment projects and need you to calculate the cost of capital for the company. The present capital structure is as follows; 2 000 000 ordinary shares with a par value of R1.00 per share. These shares are currently trading at R2.50 per share and the latest dividend paid is 40 cents. An average dividend growth of 9% is maintained. 1 500 000 8% R2.00 preference shares, with a market value of R1.80 per share. R10 000 000 non-distributable reserves R2 000 000 7% debentures due in 6 years time and the current yield to maturity is 10%, and R1 000 000 15% bank loan. Additional information: The company has a beta of 2.1 a risk free rate of 7% and a return of market of 16%. The company tax rate is 30%. Required 3.1 Calculate the weighted average cost of capital using Gordon growth model to calculate the cost of equity. (7) 3.2

Aaron’s cell-phone plan includes 3GB of data. On the 21st day of his billing period, Aaron received a message from his service provider that he has already used 75% of his data allowance for the 31-day billing period. At this rate, will he use more than 3GB of data for the month?