Financial Math Answers

You buy items costing $800 and finance the cost with a fixed loan installment for 18 months at 5% simple interest per year. What is the finance charge? What is the monthly payment?

 Suppose that the monthly compounded annual interest rate is 2.5%. What is the [2] present value β of 1 pound received in 1 month from today (in other words, the discounting factor)? Give your answer to 6 decimal places

Harry has received a $1,500 bonus. His bonus is expected to grow by 5 percent for the next 5 years. How much will Harry have at the end of the fifth year if he invests his bonuses (including the most recent bonus) in a project paying 8 percent per year?

You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost ​$3,000 per year to attend the university into perpetuity. You expect to give the university the endowment in 9 years and will accumulate it by making equal annual​ (end-of-year) deposits into an account. The rate of interest is expected to be 8​% for all future time periods.

a. How large must the endowment​ be?

b. How much must you deposit at the end of each of the next 9 years to accumulate the required​ amount?

An unrecorded credit memo for collection of a note should be?

The Tanners have received an $8000 gift from one of their parents to invest in their child’s college education. They estimate that they will need $20,000 in 12 years to achieve their educational goals for their child. What interest rate compounded semiannually would the Tanners need to achieve this goal?

Find the rate of interest required to achieve the conditions set forth:

A = $5000; P = $1250; t = 12 years; interest is compounded quarterly.

if Marwa has a 1,00,000 bond with a 7% interest , how much will she has in 8 years.

You are saving to pay for your children’s university costs in 20 years’ time. In the first year, your payment is R3 600, after which your yearly payments increased by R360 each year. If the expected interest rate per year is 10%, the amount that you expect to receive to the nearest rand on the maturity date will be [1] R213 030. [2] R340 380. [3] R412 380. [4] R484 380. [5] none of the above