0
votes
0answers
35 views

Mortgage bond monthly repayment

I was given the following question: A mortgage bond of 280000 is taken out on a house at a rate of 19.25% p.a., compounded monthly over 25 years. Question: Calculate the monthly payment ...
0
votes
2answers
48 views

Pay back loan with an annual withdraw

I was given question 7b as homework: I am guessing that there are numerous ways of approaching this. The one method I have tried was to calculate the effective interest year for the year. Then ...
0
votes
0answers
34 views

Need help with excel spreadsheet! [closed]

So I am currently doing an assignment in which I have bought a house using a home-loan. For this part of the question I need to calculate how long it will take to repay the loan. So I have constructed ...
1
vote
1answer
28 views

How do i solve this to find PMT?

I know this may seem like a stupid question but i've been up late working on this math assignment and this question just isn't working when i transpose it. So this is the formula to find Present ...
0
votes
2answers
40 views

Bond valuation question

Trying to solve the following question, but I am a bit stuck. The 2IFM1 Corporation has two different bonds currently outstanding. Bond M has a face value of $\$20,000$ and matures in $20$ years. ...
0
votes
2answers
66 views

How to rearrange this equation to solve for 'r' in closed form?

I'm taking a finance course, and I can't afford the financial calculator which can be used to solve this, so I would like to know how to solve this algebraically by hand (I don't care if it uses ...
1
vote
1answer
35 views

Recurrence On finance

A bank pays 6% interest at the end of each year on an account which initially starts with $2000. Find a recurrence relation for, the amount of money in the account at the end of year n if a) only ...
-2
votes
1answer
31 views

Calculate Interest

Peeta is saving to buy a new oven for his bakery that will cost \$8000. He has \$6,000 to invest at $5 \frac{1}{2} \%$ compounded semi-annually. How long will he need to wait for until he can afford ...
0
votes
2answers
30 views

perpetuity valuation

A perpetuity paying 1 every 6 months has present value of 20. A perpetuity paying X every 2 years has the same present value. Assuming equal effective annual rates, what is X? I know X is 3.71 from ...
-1
votes
1answer
47 views

How can I calculate in Excel the price of something with inflation

I live in Argentina, and we have 30% anual rate of inflation. I am paying a car also, in a plan of 84 payments. Each payment has a 27.7% of "Administrative Costs". For example, for a ...
0
votes
1answer
17 views

Compounding interest + continuing eposit

If i deposit $3,000$ dollars every year for $10$ years, with an annual compound of $10 \%$ return, what is the formula that I would use to figure this out? I can't wrap my head around this. I have ...
0
votes
1answer
31 views

Simple Interest troubling with new formula

I have learn in my school day Simple Interest can be calculated by $PNR/100,$ where $P$ is principle amount, $N$ is number of years and $R$ is rate of interest. For example, if I take$ P = 100, N = ...
0
votes
2answers
56 views

Find percentage increase per period to match a different percentage over the same period

Bob has an account with £1000 that pays 3.5% interest that is fixed for 5 years and he cannot withdraw that money over the 5 years Sue has an account with £1000 that pays 2.25% for one year, and is ...
0
votes
1answer
41 views

Asset Depreciation - Logarithms

How many years would it take for the value of a car purchased at 30 000 to fall to 15 000 if it depreciates by 15% in the first year and 12% every year after that? This is not actually graded ...
0
votes
1answer
91 views

Formula for compound interest with N withdrawals

I have a calculator that allows users to see how much they need to save per period (month, year, etc) when putting money into a savings account. There are N withdrawals made in the end, with N ranging ...
1
vote
1answer
19 views

Financials Maths- Credited Interest

You invest £1,000 in an account for 5 years at 9% pa nominal. How much will you get at the end of the 5 years if the interest is is credited: a) annually; b) 6 monthly; c) 3 monthly; ...
1
vote
1answer
135 views

Calculating the value of Annuities

Q: Instead of investing $3000$ at the end of $5$ years, and $\$4000$ at the end of $10$ years, Steve wishes to make regular monthly payments that will amount to the same total after $10$ years. ...
0
votes
1answer
92 views

[solved]Compound interest problem

I must admit this is my homework, but I have tried to solve it from many different angles but I can't solve it. The problem is as follows: A person has a 500 dollar debt to be paid in 3 years at an ...
0
votes
1answer
68 views

solving apr using binary chop

I need to calculate apr in the uk using this formula http://en.m.wikipedia.org/wiki/Annual_percentage_rate#European_Union Ive been advised to try the binary chop method but I have no idea how to do ...
0
votes
2answers
51 views

Algebra — Am I doing it right?

Is this correct? $ \frac{1 + 0.05}{1 + x} = \frac{1 + 0.02}{1 + 0.06} $ $\frac{1.05}{1 + x} = \frac{1.02}{1.06} $ $\frac{1.05}{1 + x} = 0.9623 $ $1.05 = 0.9623(1 + x) $ $ \frac{1.05}{0.9623} = ...
0
votes
2answers
98 views

How to calculate profit share for this example [closed]

How can we calculate a profit share for Rs. 100,000 that remained in an account for 5 days only. See this question illustration below I was confused about which tags were more appropriate for ...
0
votes
2answers
179 views

Calculating monthly instalment after down payment

An item is available for $34000\$$ cash or $20000\$$ cash down payment together with $5$ equal monthly instalments. If the rate of interest charged under the instalment plan is $30\%$ per annum, ...
0
votes
1answer
68 views
2
votes
1answer
7k views

Finding Revenue Function and Max Revenue

Studying for a midterm. The demand function for a manufacture's product is $p=1000-\frac1{80} q$ Where $p$ is the price (in dollars) per unit when $q$ units are demanded (per week) by consumers. ...
1
vote
1answer
104 views

Outstanding part-way balance for loan compounded quarterly

A loan of $R65000$ with an interest of $16\%$ per annum, compounded quarterly, is to be amortized by equal quarterly payments over $3$ years. Question: What is the outstanding amount on the loan at ...
3
votes
2answers
68 views

Accrued interest

I know how to calculate accrued interest over time on an initial amount. However, my assignment has me artificially adding additional sums intermittently. I'm curious if there is a formula to do that. ...
-1
votes
1answer
128 views

Paying less interest rate in credit card

I think I've found a way to pay off my credit cards faster, and therefore paying less interest rate. There's a Google Spreadsheet with my work at http://goo.gl/NqliZM My question What payment ...
2
votes
2answers
89 views

How to split the rent if two roommates live there from the beginning and a third one joins in the middle of the month?

I've been thinking over it and I can't figure it out. Consider the rent of the house is $X$. Now there are two roommates from the beginning and a third one joins in the middle of the month. Now ...
1
vote
2answers
944 views

Calculating interest rate of car financing

I want a new car which costs $\$26.000$. But there's an offer to finance the car: Immediate prepayment: $25\%$ of the original price The amount left is financed with a loan: Duration: $5$ years, ...
1
vote
1answer
173 views

if you invest $ 500 at 6 % compounded annually,

Please help me with this problem. It needs to be done in the same format as below if you invest $500$ dollars at $6$ percent compounded annually, how many years to the nearest tenth would it take your ...
1
vote
3answers
95 views

If you invest $\$1500$ at $7\%$ compounded annually, how many years would it take for your investment to grow

If you invest $\$1500$ at $7\%$ compounded annually, how many years would it take for your investment to grow to $3750$? Is this right? $$\text{term } = \frac{\log( \text{overall gain factor})}{ ...
0
votes
1answer
84 views

confusing part to basic accounting question

Directions: Given the information find the weekly and monthly taxable wages (4.3 weeks per month). This is for federal income taxes. Weekly Taxable Wages: $\$21.40$ per hour, $40$ hours a week, $47$ ...
0
votes
1answer
108 views

Find the price to yield 10% compounded semi-annually.

A 50,000 par value bond at 8% has semi-annual coupons and is callable at end of 12th through 15th years at par. Find the price to yield 10% compounded semi-annually.
0
votes
1answer
72 views

Calculate the time after which Money doubles

I while solving a problem in banking just thought to form a formula for the time period after which money deposited in bank at a compounded interest rate @$\alpha $ % p.a. . Amount for compounded ...
1
vote
1answer
165 views

A loan is being repaid by 12 annual payments of 3000…determine the principal and interest portions of the tenth payment

A loan is being repaid by 12 annual payments of 3000 followed by 8 annual payments of 5000. If i=0.10, determine the principal and interest portions of the tenth payment and the 15th payment. I am ...
1
vote
1answer
136 views

Find the present value of a ten-year annuity

Find the present value of a ten-year annuity which pays $400$ at the beginning of each quarter for the first $5$ years, increasing to $\$600$ per quarter thereafter. The annual effective rate of ...
1
vote
1answer
136 views

Find the accumulated value of an investment fund

Find the accumulated value at the end of six years of an investment fund in which \$100 is deposited at the beginning of each quarter for the first three years and \$50 is deposited at the beginning ...
0
votes
1answer
35 views

Find the relative shares of B,C and D in the estate, if it is assumed that the estate will earn a 7% annual eff

Person A leaves an estate of $100,000. Interest on the estate is paid at the end of the year to beneficiary B for the first 10 years, to beneficiary C for the next 10 years, and to charity D ...
0
votes
3answers
98 views

A fund of $30,000 is used to award scholarships…If i=0.09, find the number of scholarships which can be awarded

A fund of $30,000 is used to award scholarships of amount 3000, one per year, at the end of each year for as long as possible. If i=0.09, find the number of scholarships which can be awarded and the ...
1
vote
1answer
412 views

Determine the effective annual interest rate on the loan

A borrower owes \$5000 today and has promised to pay \$1900 at the end of the next three years to repay the loan. Determine the effective annual interest rate on the loan. What is the outstanding ...
0
votes
2answers
172 views

Determine the monthly payments if the nominal rate is 12% converted monthly

a) A $\$50,000$ mortgage is to be repaid by monthly payments for $20$ years. Determine the monthly payments if the nominal rate is $12\%$ converted monthly b) an extra payment of $\$1,000$ is made at ...
1
vote
2answers
240 views

Profit and Loss calculation: Fake currency

A store buys an item for $\$50$. They price it then, at $\$80$ ($\$30$ profit margin). A customer buys the item from them with a fake $\$100$ note. The store returns $\$20$ to the customer. My ...
1
vote
2answers
68 views

Value of Investment in the Past

An amount of $1000$ is to be accumulated at a compound rate of discount of $9$% per year. (a) Find the present value $3$ years before (b) Find the value of i corresponding to d. For a) i have done ...
0
votes
1answer
66 views

Find the total percentage loss over a specified time frame.

If you had an investment and you consistently lost 5% of it per year for 6 years, how do you find the total percentage loss, without knowing the original investment?
1
vote
1answer
339 views

Finding a fix amount payment to payoff multiple credit cards in 24 months

Mr.Debt has 3 credit cards. First card have \$5,000 balance with the rate of 10% compounded monthly. Second card have \$2,000 balance with the rate of 14% compounded monthly. Third card have \$4,000 ...
1
vote
0answers
59 views

Interest % and final payment

I dont get these two questions? How should I calculate the answer? A) Sam intends to retire in 6 yrs. To supplement his pension he would like to receive $\$234$ every 2 weeks for 10 yrs. If he is ...
1
vote
2answers
111 views

How to solve for $i$ and $n$ in compound interest formula?

Given that $$F = A{ (1+i)^n - 1 \over i}$$ How can you solve for $i$ or $n$?
1
vote
2answers
14k views

What is the formula for the difference between CI and SI?

if principal, time and rate are given how do i find the difference between Compound interest and Simple Interest? P=12,000 n=1 and a 1/2 yrs. R=10% per year ...
0
votes
1answer
293 views

Figuring a loan payoff amount

I have a loan for a principal amount of \$117,000.00 at 9.75% interest and a total amount due (including the interest for 84 months) of \$191,805.60. I had 84 months to pay it off, or I could pay it ...
0
votes
2answers
66 views

How is it possible to revise for a maths test of this type - Which is the best method to solve it

I need some help with this question, My answer to question E) is 1880 pounds per year, can anyone suggest a different answer, also does anyone know how would I revise for questions of this type. ...