Financial Math Answers

A car cost £9000 and depreciates at a rate of 20℅ per annum. Find the value of the car after 3 years.

What is asked:

What are given:

What is the answer:

Calculate the principal sum which, if deposited at 9.5% compound interest, will grow to £400 after three years.

What is asked:

What are given:

What is the answer:

For how long would £500 have to be left in an account paying 4% interest p.a. to give a balance of £600?

What is asked:

What are given:

What is the answer:

Alice sells her residential investment property for $500,000 that she held for five years. She bought the property for $320,000 and claimed a building depreciation allowance of $12,000 each year. What is her assessable capital gain

Which answer choice correctly identifies the missing information in the problem?

Leo is 23 years old and just graduated from college. He accepted a job as the manager of a amusement park. His major decision was to offer family memberships to the public for $200 a year. The single admission to the amusement park is $25 per family each visit. How many shows can a family see if they have a limited budget?

Find the rate of simple interest per annum for

(a) $2000 amount to $2110 in one year

A company wants to undertake an investment and has two projects under consideration. Project 1 will have a useful life of 7 years whereas project 2 would have a useful life of 6 years. Project 1 would also require an initial investment of GHc300,000 plus an additional repair cost of GHc20,000 on year 6. Project 2 would also require an initial investment of GHc240,000 plus an additional repair cost of GHc25,000 in years 4 and 5. Project 1 and 2 have an estimated salvage value of GHc5000 and GHC3000 respectively. Due to different project risk, project 1 and project 2 would be evaluated at an interest rate of 10% and 12% per year respectively. Project profits are estimated to be GHc100,000 and GHc100,000 per year respectively for both projects starting at the end of year 1 till the end of their respective project lifespans.

Using the NPV approach, determine which project the company must invest in.

Joan has savings of $12000 on June 1. Since she may need some of the savings during the next 3 months she is considering two options at her bank. an Investment builder saving account earns a 2.25% rate of interest. The interest is calculated on the daily closing balance and paid on the first day of the following month. A 90- to 179- day cashable term deposit earns a rate of 2.8% paid at maturity. If interest rates do not change and Joan does not withdraw any of the funds how much more will she earn from the term deposit up to September 1? (Keep in mind that savings accounts interest paid on the first day of the month will itself subsequently earn interest during the subsequent month.)

Evan's saving account pays interest of 1.25%. interest is calculated on the daily closing balance and paid at the close of business on the last day of the month. Evan's account balance on July 1 was $8240. He deposited $1235 on July 14 and withdrew $840 on July 22. How much interest will Evan be paid for the month of July?