Financial Math Answers

if her dad deposits R3570,00

 at the end of every six months for the next four years into a bank account. The account pays 8,5% interest per annum, compounded semi-annually. Her father pays and additional R5550,00

 into the account for every R3570,00

 deposit he makes. The first deposit will be made six months from now. How much money will there be in the account for Aziz to pay for her college expenses?

Mike wants to put R1, 000,000 investment/capital in the above project. He has analysed the estimated income and expenditure and found that the project will give incremental net cash flows or net operational cash flows of R360, 000 per year. The project has a lifespan of 5 years (salvage value is ignored). The expected average annual depreciation is R4000. Use the discount rate you calculated above to determine the Pay Back Period, Rate of Return, NPV and the IRR of the project and comment about your results.

- Pay Back Period

- Return On Investment

- Net Present Value

- IRR

A person gifted Rs. 2500 to his two children aged 10 years and 15 years respectively with the condition that the sum should be divided in such a way that the two children got the same amount when they reached the age of 30 years. Assuming that the rate of compound interest charged is 5% p.a., what is the value of gift received by each child?

A home was bought with a 20% down payment of R177175,00.The balance was financed for 20 years at 9,4% interest per annum,compounded semi-annually.Find the size of the half-yearly payments for the loan

Question # 1

A major farming company is planning to purchase new tractors. It wants to borrow $650 million 

by issuing bonds. The bonds are for a 12-year period with simple interest computed quarterly at a 

rate of 10 percent per year. Interest is to be paid each quarter to bondholders. How much will the 

airline have to pay it. quarterly interest? How much interest will it pay in the 12-year period?

It costs $35 to send 5 packages through a certain shipping company. Consider the number of how much it costs for each package.

You have to wait for 3.5 years before starting to save for the purchase of a new car. You want to save towards the purchase of R12,500 car plus GST, Your savings rate is 5.2% compounded semi-annually and you want to be able to buy this car in 9 years. What is the size of your quarterly deposits?