Financial Math Answers

Payment of 7,000.00 every month for one (1) year that will start at the end of the third month. What is the period of deferral?

7. Mary deposits ₱6,000 into an account earning 4% annually. After 8 years what will Mary's balance have grown to, including interest?

6. Bob deposited ₱25,000 in a new savings account at 6% interest compounded semiannually.

At the beginning of year 3, Bob deposits an additional ₱35,000 at 8% interest compounded semiannually. At the end of 4 years, what is the balance in Bob's account?

Identify and state one situation, opportunity, challenge being faced by decision makers in an organisation or sector of your interest.

Note.

Problem should be real or hypothetical one relevant to current challenges being faced by decision makers in an organisation or sector

Mr. Banabashi has a house, worth €180,000. He is concerned with earthquake risk and wishes to insure his property. It is known that either there is a rare chance of one in 10,000 of an earthquake causing the house to be destroyed completely. Or there is a more common chance of 1 in 100 of an earth trimmer causing discomfort.

His daughter, Bimianeh who is a student of ECO College of Insurance suggests his father should sell half share of his property and buy a half share of another property with equal earthquake risk. This, she argues will pool his risks. But she has difficulty convincing his father about this. They approach you for consultation.

(a) What would you say to them?

(b) Who do you think is right and why?

Suppose you save $4,000 per year at the end of each year for 30 years and earn 5% interest per year. How much will you have at the end of 30 years?