Financial Math Answers

Round the answer to this question to the nearest rand. David borrowed R911012,00

R911012,00 to refurbish his holiday home. The loan requires monthly repayments over 12 years. When he borrowed the money, the interest rate was 12,4% per annum, compounded monthly, but five years later the bank increased the annual interest rate to 13,9%, in line with market rates. After five years the present value of the loan is R682081,77

R682081,77. With the new interest rate, his monthly payments will increase by

Round the answer to this question to the nearest rand. David borrowed R911012,00

R911012,00 to refurbish his holiday home. The loan requires monthly repayments over 12 years. When he borrowed the money, the interest rate was 12,4% per annum, compounded monthly, but five years later the bank increased the annual interest rate to 13,9%, in line with market rates. After five years the present value of the loan is R682081,77

R682081,77. With the new interest rate, his monthly payments will increase by

Franco's company makes tomato paste. His fixed costs are $23,000. The variable cost to make a case is $10. He will price the cases at $25. What are the sales he must reach in order to break even?

As part of its benefits package, a company offers vision insurance to employees. The monthly premium cost per employee is $43. If the employees pay 75% of the premium, how much is the total annual premium paid by an employee for the vision insurance?

Mindy is a real estate agent who earns 5.5% commission on each sale she makes. Last month she sold two homes for $159,000 and $213,000. How much did Mindy make in commissions for the month?

Irving works for Sam's Food Market. He is paid weekly on the basis of a 40-hour work week at the rate of $9.50 an hour with time-and-a-half for overtime. During one week he worked 49 1/2 hours. What was the amount of his total earnings for the week?

Linda sells vacuums part time. She is paid a monthly commission only. She receives 15% of her first $1,500 in sales and 20% of the remainder. Last month she sold $2,233 worth of vacuums. How much commission did she earn last month?

8. A small home business set up with an investment of $ 10,000 for equipment. The business manufactures a

product at a cost of br. 0.64 per unit. If the product sales for Br. 1.20 per unit how many units must be sold

before the business breaks even?

6. XYZ company’s cost function for the next four months is C = 500,000+5Q

(a) Find the BE dollar volume of sales if the selling price is br. 6 / unit

(b) What would be the company’s cost if it decides to shut down operations for the next four months

(c) If, because of strike, the most the company can produce is br. 100,000 units, should it

shutdown? Why or why not?

3. A firm sells a product for birr 60 per unit. Raw material cost are birr 13 per unit, laborcosts are birr 20 per

unit, and annual fixed costs are birr 340,000.

(a) Determine the profit function.

(b) How many units would have to sold to earn an annual profit of birr 240,000?

(c) Determine the amount of contribution to the fixed cost and profit, if the firm sells

10,000units.