Financial Math Answers

Valentina’s Pizzas Corporation is considering the purchase of a new restaurant for $8 million. The forecasted net cash flows (net of the costs associated with running the restaurant) are $3 million a year for the next 15 years. A major refurbishment costing $2 million will be required after both the fifth and tenth years. After 15 years, the restaurant will be closed and the restaurant’s venue is expected to be sold for $16 million. If the discount rate is 8%, what is this investment’s NPV?

the sale price of smart Tv is 40% lesser tha the sale price of smartphone . If the regular price of smartphone is Php 12,550.00 is on sale at 20% off . What is the sale price of the smart TV?

the sale price of smart Tv is 40% lesser tha the sale price of smartphone . If the regular price of smartphone is Php 12,550.00 is on sale at 20% off . What is the sale price of the smart TV?

A mortgage of 665,000 is amortized over 25 years by makind end of month payments of 3560.

What is the annual rate of interest compounded semi annualy?

What is value of final payment?

What is the total interest cost for the debt over 25 years?

The municipality of kirkland borrowed 130000 to build a recreation center. The debt principal is to be repaid in eight years, and interest is at 10.5% compounded annually is to be paid annually with end of year payments. To provide for the retirement of the debt the municipal council set up a sinking fund into which equal payments are made at the time of annual interest payments. Interest earned by the fund is 8% compounded annually.

What is annual interest payment on debt.

What is the annual payment into the sinking fund?

What is the total annual cost ( the periodic cost) of the debt?

Compute the book value of the debt after two years.

Compute the interest earned by the fund in year 5.

How much was borrowed is a simple interest rate of 2.10% was offered payable in 4 months with interest of Php 35.00?

What is the simple interest on a Php 500 loan at 25% interest to be paid at the end of 6 months

Voice Control Company has some issued shares for which the announced dividend is $7 and the dividend will grow at a rate of 6% for the next 5 years (Year1-5). From year 6 the growth rate will change to 8% and will continue thereafter. What is the current price of the share if the required rate of return rate is 10%?

If a person is asked to buy a share of a company where the dividend is expected 7$ next year and he is told that the growth rate is constant at 11% for the foreseeable future what will be the price of the share if the discount rate is 17%?                                                                         

A brand new car has a list price of Ᵽ850,000.00. The car dealer is giving a trade discount of 10% and

requires a 20% down payment. The car dealer has an arrangement with a bank to finance the balance on the

car. The term of the loan is 5 years. The bank is charging an interest of 6% per annum.

a. Compute the net invoice price of the car.

b. Compute the down payment needed and the balance that will be financed by the bank.

c. How much will the monthly payment be? What portion of the monthly payment for the first month will go

to interest and principal? What about the second monthly payment?