Financial Math Answers

Centuries ago, rich families in the province of friesland established a fund to further welfare and education.from this fund,only the interest revenue was allowed to be spent in order to keep principal amount unattached .assume the fund has amounted to R12 million and market interest rate is 6%annually .what could be the perpetuity (or present value of the fund ) endowed to the society?

You have a choice when subscribing toour magazine:you can

(i) pay R100 now for a next four year subscription,

(ii) pay R28 at the beginning of each month for four years,or

(iii) pay R54 today and R54 again two years from today.

Which one is the best deal for you,the subscribers,if your opportunity cost of funds is 10%?

Susan Bertrees can invest $12,000 at 2% interest compounded twice a year or compounded quarterly. If either investment is for 5 years, which investment results in more interest? How much more interest is yielded by the better investment?

A non-interest bearing promissory note has a face value of $950. Find the proceeds of this note if it is discounted 3½ years before its maturity date at 8% compounded quarterly

Brendan & Kelly purchased an item valued at $147,000. They paid $22,050 down and financed the rest at 2.8% compounded annually. To reduce the amount owing to $32,490 at the end of 3 years, what size of equal payments must Brendan & Kelly make at the end of each three months?

Enter the present value as a positive value in the PV box below.

Enter PMT and FV as positive or negative values based on PV being positive.

Report PMT accurate to the nearest cent.

P/Y =

C/Y =

N =

I/Y =

PV =

PMT =

FV=

The size of each equal payment is

(enter a positive value) $  .__________________

Nolan Walker decided to buy a used snowmobile since his credit union was offering such low interest rates. He borrowed $51,00 at 4.25% on December 26, 2019, and paid if off February 21, 2021. How much did he pay in interest? Using ordinary interest and no leap year

Assuming aggregate demand remains constant, supply shocks that cause a leftward shift in the aggregate supply curve will------.

Select one:

a. increase both prices and the rate of unemployment

b. decrease the rate of unemployment

c. increase real output

d. decrease prices

Which of the following statements are correct?

1. The introduction of government spending increases the size of the multiplier.
2. The introduction of taxes increases the size of the multiplier.
3. The introduction of taxes reduces the slope of the consumption function.

Select one:

A. None of the statements is correct.

B. A

C. B

D. C