Financial Math Answers

After retiring, you want to be able to take $1000 every month for a total of 20 years from your retirement account. The account earns 6% interest. How much will you need in your account when you retire?

You want to have $200,000 in your account when you retire in 30 years. Your retirement account earns 8% interest. How much do you need to deposit each month to meet your retirement goal?

A traditional individual retirement account (IRA) is a special type of retirement account in which the money you invest is exempt from income taxes until you withdraw it. If you deposit $100 each month into an IRA earning 6% interest, how much will you have in the account after 20 years?

Hogsmeade village is evaluating the proposal of opening a new shop. Hogsmeade’s required rate of return

is 10%. Should the project be accepted if Hogsmeade wants to make atleast a profit of $6,000 as in today’s

value? Explain why? Which technique have you applied to make decision and why?

The estimated cashflows (in $) from the project are given below: (Round off your values. No need to put

digits after decimal)

Year Zonko’s Joke Shop

0 (30,000)

1 7,500

2 7,500

3 7,500

4 7,500

5 7,500

A man buys a house for $200,000. He makes a $50,000 down payment and agrees to

amortize the rest of the debt with quarterly payments over the next 10 years. If the

interest on the debt is 12%, compounded quarterly, find

(i) Size of the quarterly payments, (4 marks)

(ii) Total amount of the payments, and (4 marks)

(iii) Total amount of interest paid.

2. At the beginning of the year, BIBI Company’s liabilities equal P200,000. During the year, assets increase by P80,000, and at year-end assets equal P460,000. Liabilities decrease P50,000 during the year. What are the beginning and ending amounts of equity?

How much is the beginning capital?

1. At the beginning of the year, total assets amounted to P800,000 while total owner’s equity amounted to P550,000. During the year, assets increased by P50,000 while liabilities increased by P30%. If the owner contributed additional of P18,000 and withdrawn P5,000 during the year, how much is profit or loss earned or incurred by the entity? Indicate whether profit or loss.

XYZ Company has Beginning Inventory Php. 100,000, New Purchases

amounting to Php. 450,000 and Ending Inventory is Php. 35,000. Find the cost of

goods sold for XYZ Company.

Esperanza is paid on a daily basis she is paid 312 pesos a day plus commission of 1.5% on all her sales or total sales for the month or 38,000 235 she work for a total of 24 and a half days monthly deductions are four and a half of total monthly paper sss 75 pesos for medicare and 3% of total monthly pay for withholding tax union dues every month is 20 pesos compute for net pay

Mr. Ezad takes an interest free loan to buy a computer. He repays the loan in monthly

instalments. For the first month, he repays RM110. For the second month, he repays

RM160. He repays RM50 more every month until the loan is completely settled. If his

final monthly instalments is RM860, find

a) The number of months it takes to settle the loan

b) The amount of the loan