Financial Math Answers

Find the present value of the amount php 7,500 payable at the end of each month for 10years if money is invented at 5% compounded monthly

• Suppose you are being interviewed for your dream job. The pay is tricky and there's also a catch: the job is only for 5 months.
• Your future boss tells you that the first week's pay will be $10 (not per hour, the whole week is $10!)
• Concerned about your reaction, your future boss adds that your week 4 salary will be $100 (again, not per hour).
• Knowing how valuable you would be to the company and before you storm out of the office the boss mentions that the pay increases exponentially every week. 
• Now... would you take this job?

1. Find the model that describes this salary situation using the variable "t" as the number of weeks.
2. Week #1 corresponds to "t=0". Week #2 corresponds to "t=1", etc... How much will you get paid in Week 3?
3. For simplicity, assume that a month has exactly 4 weeks. How much will you get paid during the last week.

Deepika deposits $10000 into her savings account that earns 7% per annum

compounded annually for first two years, 8% compounded semi-annually for next three

years and 12% compounded quarterly for the last two years.

(i) Find the accumulated amount at the end of the first five years.

(ii) Find the accumulated amount at the end of seven years.

b) Pathum deposits 100000 rupees which compounded annually with interest rate i per

annum. If the total amount doubles after 6 years find the value of i. (Hint: Use the

formula R = P(l + i)t )

The market share of Galaxy Industries' main product increased by 20 percentage points last year. If the share changed from 50 to 70 percent of the total market, what was the actual percent change in the market share?

a.20% increase

b.20% decrease    

c.40% increase

d.40% decrease

Building Bloc, Inc. just paid a dividend worth of Php50. It is expected to grow its dividend by 3% per year. If the market requires a rate of return of 15% on earnings, how much should the stock be selling for in 3 years?

A Php1,000, 9.5% MWDR Inc. bond has a semi-annual coupon rate of 15%. This matures after 6 years and the required rate of return is 8%. Find the bond price.

You purchase a Php1,000 coupon band. The coupon rate on the bond is 4%. What is the coupon payment?

A company declares that next year's dividend will be Php1 per share. Everyone holding 100 shares will receive Php25 once per quarter. Find the dividend yield.