Financial Math Answers

3. A $1000 investment as interest a 4% per year, compounded quarterly How long will it take to double the value of the investment?

4. if $4000 is invested for 10 years, what annual interest rate, compounded semi-annually, would double the money?

How much do you need to deposit at the end of each quarter imo an account paying 83%a compounded quarterly if you want to have $5000 in 5 years?

Mr. Akrong gave his two children Nii and Naa a total of GH¢ 900.00 as a present. Nii immediately paid Naa GH¢ 75.00 to repay a loan. They then found that Naa had twice as much as Nii. How much did each of them receive from their father?

At 2% interest per quarter, what will be the present value of the simple perpetuity if payment of P3,500 is made at the beginning of each quarter?

Given that a rate is 8% p.a then the equivalent rate, j compounded continuously, expressed as a percentage rounded to three decimal places,  is equal to

(a) What is the simple interest on P60,000 for six months at a simple interest of 12%

(b) What is the compound interest if the same investment is compounded quarterly? (c)

Obtain the difference.

Project costs Rs 180,000 and is expected to generate cash inflows as:

Year Cash Inflow ( Rs )

1 20000

2 24000

3 30000

4 36000

5 40000

a. Discuss the characteristics of long term capital budgeting decisions

b. calculate the Net Present Value of the project if the cost of capital is 12% and conclude.

For a business firm leverage is about the fixed operating cost and the fixed finance costs in the cost structure of the firm. For the given details, identify for which firm the degree of operating leverage and degree of financial leverage are higher and why so:

Firms Amrit Baayu

Sales (Rs.) 360000 750000

Variable cost p.u 20 150

Fixed cost (Rs.) 72000 140000

Output (units) 6000 1500

Interest 40000 80000

Dr. Grey would like to place her savings into two different investments; moonlife financial at 7% and womanulife financial at 12% interest rates per annum. She invested part of her savings on both companies and found out that she still has php 125,000.00 left in her savings. When she calculated the expected interest at the end of the year, the total interest from both investment would only be php 7,500.00. Hence, she decided to double her original investment in womanulife and was left with only Php 5.000.00 in her savings. How much was her total savings and how much did she originally invested in both companies?

What js the present value of a $100 perpetuity if the interest rate is 7%? If interest rates doubled to 14%, what would its present value be?