Financial Math Answers

Fine the macaulay duration of a 10 year bond with 7% annual coupons, assuming the effective rate of interest is 7%.

Emmerson invests N$100,000.00 on a monthly basis, at the end of each month at an interest rate of 8.5% compounded quarterly. a) How much will he have after 3.5 years? (6) b) How much interest does he earn on a monthly basis? (Hint: Calculate the monthly average).(4

Emmerson invests N$100,000.00 on a monthly basis, at the end of each month at an interest rate of8.5% compounded quarterly.

a) How much will he have after 3.5 years? (6)b) How much interest does he earn on a monthly basis? (Hint: Calculate the monthly average)

Kgomotso bought a townhouse for R1395 000. She managedtosecure aloan at an interest rate of 11,35% per year, compounded every six months, for a period of 20 years. Determine the periodicpayments Kgomotso must make.

Cassidy's gross income for the year included salary, $11,400; commission, $17,720; and interest, $540. Her adjustments to income were payments to a retirement plan, $1,000 and 2 exemptions at $4,000 each. Find her taxable income.

Rose wants to buy a car on hire purchase for N$75,000.00 at the rate of 11% p.a. repayable using monthly installments for a period of 3 years and 10 months. (No deposit was required). Use the given information to calculate the: (a) Total amount of money expected to be paid to the Hire Purchase Company over the years. (5) (b) Monthly installment to be paid by Rose. (5) c) Bank 1 offered her a loan repayable at a certain monthly installment for the same period of time as the car hire company at the rate same rate of 11% p.a. whereas Bank 2 offered to reduce the rate of by 1.5% p.a. What is the: (i) Total amount of money expected to be received by Bank 1. (5) (ii) Monthly instalment to be paid by Rose to Bank 1. (5) (iii) Total amount of money expected to be received by Bank 2 using the reduced interest rate. (5) (iv) Monthly installment to be paid by Rose to Bank 2. (5) (v) How much money will Rose save per month using the cheapest option? (5)

Rose wants to buy a car on hire purchase for N$75,000.00 at the rate of 11% p.a. repayable using monthly installments for a period of 3 years and 10 months. (No deposit was required). Use the given information to calculate the:

a. Total amount of money expected to be paid to the Hire Purchase Company over the years. (5)

b. Monthly installment to be paid by Rose (5)

A firm manufactures three different types of hand calculators and classifies them as small, medium, and large according to their calculating capabilities. The three types hone production requirements given by the following table

                                                Small         medium               large

Electronic circuit component          5                    7                       10

Assembly time (n)                           1                    3                        4

Cases                                               1                    1                        1

The firm has methyl limit of 90.000 circuit components, 30.000 hours of labor and 9000 cases. If the profit is birr 6 for the small, birr 13 for the medium and birr 20 for the large calculator, then

A.    How many of each should be produced to yield maximum profit

B.    What is the maximum profit?

A firm manufactures three different types of hand calculators and classifies them as small, medium, and large according to their calculating capabilities. The three types hone production requirements given by the following table

                                                Small         medium               large

Electronic circuit component          5                    7                       10

Assembly time (n)                           1                    3                        4

Cases                                               1                    1                        1

The firm has methyl limit of 90.000 circuit components, 30.000 hours of labor and 9000 cases. If the profit is birr 6 for the small, birr 13 for the medium and birr 20 for the large calculator, then

A.    How many of each should be produced to yield maximum profit

B.    What is the maximum profit?