Tagged Questions

2
votes
2answers
65 views

Are there constraint problem calculators?

So I just remembered Lincoln Logs exist, so I found ten giant sets of them on ebay for Buy It Now, and I'm trying to decide what combination of purchases gives me the most logs for the least money if ...
0
votes
3answers
48 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 ...
0
votes
2answers
34 views

If $ i=0.09 $, find $ n $ and the amount of final payment.

A fund of $ \$500 $ is to be accumulated by $ n $ annual payments of $ \$100 $, plus a final payment as small as possible made one year after the last regular payment. If $ i = 0.09 $, find $ n $ and ...
1
vote
2answers
55 views

at a nominal rate of interest of 8% converted semiannually…Find the initial amount of the loan.

A loan is to be repaid with level instalments payable at the end of each half-year for $3$ and $\frac{1}{2}$ years, at a nominal rate of interest of 8% converted semiannually. After the $4^{\rm th}$ ...
1
vote
1answer
82 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
1answer
372 views

How to convert interest rate to discount factor

I'm studying on Kellison's Theory of Interest and I'm stuck on the exercise 20/a of the 1st chapter. If the $i=0.1$ then $d = 0.0901$ $d_5=\frac{A_5-A_4}{A_5}$ when I insert $d$ into this ...
0
votes
1answer
62 views

Showing an inequality with interest rates and compounding

Suppose that your grandmother is receiving Social Security at the start of next year and has to choose between two plans for how to receive her payments. Divide each year into $k$ payment periods ($k$ ...
2
votes
1answer
377 views

Confused about Effective Rate of Discount- Theory of Interest

I'm currently reading Kellison's book, The Theory of Interest. I've reached the chapter on Effective Rate of Discount and it's somewhat confusing. The book explains it as a loan where interest is paid ...
2
votes
2answers
312 views

Using Black-Scholes Equation to “buy” stocks

From what I understand, Black-Scholes equation in finance is used to price options which are a contract between a potential buyer and a seller. Can I use this mathematical framework to "buy" a stock? ...
4
votes
5answers
3k views

Understanding Black-Scholes

Assume I have only basic math knowledge, what specific areas of math would I need to learn in order to understand the following webpage: Black-Scholes Many thanks.