Financial Math Answers

A non-interest bearing promissory note has a face value of $950. Find the proceeds of this note if it is discounted 3½ years before its maturity date at 8% compounded quarterly

Brendan & Kelly purchased an item valued at $147,000. They paid $22,050 down and financed the rest at 2.8% compounded annually. To reduce the amount owing to $32,490 at the end of 3 years, what size of equal payments must Brendan & Kelly make at the end of each three months?

Enter the present value as a positive value in the PV box below.

Enter PMT and FV as positive or negative values based on PV being positive.

Report PMT accurate to the nearest cent.

P/Y =

C/Y =

N =

I/Y =

PV =

PMT =

FV=

The size of each equal payment is

(enter a positive value) $  .__________________

Nolan Walker decided to buy a used snowmobile since his credit union was offering such low interest rates. He borrowed $51,00 at 4.25% on December 26, 2019, and paid if off February 21, 2021. How much did he pay in interest? Using ordinary interest and no leap year

Assuming aggregate demand remains constant, supply shocks that cause a leftward shift in the aggregate supply curve will------.

Select one:

a. increase both prices and the rate of unemployment

b. decrease the rate of unemployment

c. increase real output

d. decrease prices

Which of the following statements are correct?

1. The introduction of government spending increases the size of the multiplier.
2. The introduction of taxes increases the size of the multiplier.
3. The introduction of taxes reduces the slope of the consumption function.

Select one:

A. None of the statements is correct.

B. A

C. B

D. C

Investment decisions cannot be affected by

Select one:

a. Expected rate of return

b. Cost of capital goods

c. Interest rate

d. None of the options are correct

Which one of the following is NOT a possible relationship between income and spending

Select one:

a. None is a relationship

b. Income is higher than spending

c. Income equals the level of spending

d. Spending is higher than income

One of the following best explains consumption spending

Select one:

a. Spending on infrastructure

b. None of the option are correct

c. Spending on capital goods

d. Spending on final consumer goods

Company A makes an operating profit margin of 5 % on sales of R2.5 million. Company B has sales that are 20% higher than Company A and achieves an operating profit margin of 3.5%. Which company makes the highest operating profit?

Select one:

a. Company A

b. Not possible to calculate

c. Both make the same operating profit

d. Company B