Financial Math Answers

A person gifted Rs. 2500 to his two children aged 10 years and 15 years respectively with the condition that the sum should be divided in such a way that the two children got the same amount when they reached the age of 30 years. Assuming that the rate of compound interest charged is 5% p.a., what is the value of gift received by each child?

A home was bought with a 20% down payment of R177175,00.The balance was financed for 20 years at 9,4% interest per annum,compounded semi-annually.Find the size of the half-yearly payments for the loan

Question # 1

A major farming company is planning to purchase new tractors. It wants to borrow $650 million 

by issuing bonds. The bonds are for a 12-year period with simple interest computed quarterly at a 

rate of 10 percent per year. Interest is to be paid each quarter to bondholders. How much will the 

airline have to pay it. quarterly interest? How much interest will it pay in the 12-year period?

It costs $35 to send 5 packages through a certain shipping company. Consider the number of how much it costs for each package.

You have to wait for 3.5 years before starting to save for the purchase of a new car. You want to save towards the purchase of R12,500 car plus GST, Your savings rate is 5.2% compounded semi-annually and you want to be able to buy this car in 9 years. What is the size of your quarterly deposits?