Financial Math Answers

Suppose you want to open a bank account with 1463 Taka. After some research, you have narrowed down your choice to one of the two banks - bank X and bank Y. Both of them provide identical facilities except for yearly interest rate, r. Bank X pays with an interest rate rX=0.05 yearly (i.e. compounded 1 time per year), whereas bank Y pays an interest rate rY=0.03 at six months per year (i.e. compounded 2 times per year). Both banks use the following formula to calculate the annual (compound) interest amount, I=P(1+rn)n−P, where P denotes the principal (initial value), r is the interest rate, and n is the number of compoundings per year. So, your action set would be A={a1,a2}, where a1 means choosing bank X and a2 means choosing bank Y. Assume that the payoff function is defined as the yearly interest amount. Q1. What is the value of n for bank X? unanswered Q2. What is the value of n for bank Y? unanswered Q3. What is the annual interest amount paid by bank X?

If a trust fund amount to#57,000 was invested five years ago at 15 percent compounded annually.find the amount in the fund now

With j1=7.6%, what is equivalent j12?

Jon's average salary over the last 3 years was $78,291. He worked at the company for 4 years so was 60% vested in his retirement plan. If his multiplier is 2.21% and his pension plan was based on the final 3 salary years, what is his annual pension?

Caesar's employer offers a career average benefit with a multiplier of 3.12% times the number of years worked. What will Caesar's annual benefit be if his average earnings for the 10 years that he worked was $45,259?

Conrad's employer offers graded vesting plan. Every year after the first year, vesting increases 10% with a 2.5% multiplier. If Conrad's three-year average salary was $67,453, and he left after the fourth year, what will his benefit be? A. 2,023.59 B. 5,058.98 C. $2698.12 D. 6,745.30