Financial Math Answers

The force of interest at any time t, (measured in years) is given by

δ(t) =



0.07 − 0.005t, 0 ≤ t < 5

0.06 − 0.003t, 5 ≤ t < 10

0.03, t ≥ 10

What is the total accumulated in value at any time t (> 0) of investments of $100 at times 0, 4 and 6?

Lea now has $2,000. How much would she have after 2 years if she leaves it invested at 2% with annual compounding?

The force of interest at any time t, (measured in years) is given by

 0.07−0.005t, 0≤t<5 0.06 − 0.003t, 5 ≤ t < 10

δ(t) =

What is the total accumulated in value at any time t (> 0) of investments of $100 at

0.03, t ≥ 10 times 0, 4 and 6?

What amount of money invested today at 3.54% compounded semiannually will have an accumulated value of $551,000 in 7 years from now. Round all answers to two decimal places if necessary.

Accounting equation

Debit/credit

Effects on accounting equation

Assets

Owners equity

Liability

1. Owners contributed cash R50 000 and personal computer R9000 to the business as capital.

2. Business sold goods on credit to a customer Total sales value R15 000

3. The business had not paid rent yet at month end R10 000

4. The owner borrowed a loan from bank R25 000

Hannah made a bank loan worth Php 200,550 with 5% interest compounded semi-annually (2 times in a year). If she is to pay at the end of the period only, how much will be the value of the loan after 2 years?

A vending treasury is purchased for RM 2,800 in cash with RM 700 down payment and fourteen monthly payments. If the interest calculated is 10% per annum, using the fixed rate equation calculation find:

I. Total interest charged

Secondly. monthly payment

Assume that 4 years from now you need 1000. Your bank compounds interest at an 8% annual rate.

a. how much must you deposit now to have a balance of 1000 at year 4?

b. if you want to make equal payments at the end of years 1 through 4 to accumulate the 1000, how large must each of the 4 payments be?

c. if your father were to offer either to make payments calculated in part b above or to give you a lump sum of 750 one year from now, which option would you choose and why?

d. if you have 750 at the end of year 1, what interest rate, compounded annually, would you have to earn to have necessary 1000 at year 4?

e. suppose you can deposit only 186.29 each at the end of year 1 through 4, but you still need 1000 at the end of year 4, what interest rate, with annual compounding, is required to achieve your goal?

250 is invested at a discount rate of 18%p.a convertible monthly for the first 3 months followed by an interest rate of 20%p.a convertible quarterly for the first 9 months. Calculate the accumulated sum at the end of the year

Two duopolists produce and quantities of a homogenous product . The market demand of the product is given by Q= 240-2p where Q= Qa +Qb and the price of the product. The total functions of the duopolists are given by: C(Qa)= 60+4Qa and C(Qb)= 50+0.625Qb^2

a) Find the level of output that maximizes the profit of each firm and the corresponding profit

and price.

b) Find the level of output that maximizes their profit if the two firms corporate and the

corresponding profit and price