# Tagged Questions

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### Accumulated value of annuity

An annuity pays 1 for the first n years, 2 for the second n years and 3 for the third n years with the effective annual interest rate $i$. Find the accumulated value of this annuity at time $3n$ ...
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### How to calculate the ⌉ operator?

In a book about finance, the following formula appears: $$\large a_{10 \,⌉\, 0.04}$$ What is this ⌉ operator and how to read / calculate it?
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### Calculating annuity payment

I have a time payment question I'm having trouble with: "Bill would like to save 60000 dollars for a deposit on his first home. He decides to invest his net monthly salary of 3000 dollars in a bank ...
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### Compute $d(\log(S_t))$ using Ito's Formula

We are given the following: d$S_t$ = $\sin(S_t)t^2dt + e^{\sqrt{S_t}-t}dB_t$ And are asked to compute several different things, one of which is $d \log(S_t).$ If I'm understanding Ito's formula ...
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### 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 $4^{\rm th}$ ...
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### 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 ...
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### 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 ...
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### European Calls: arbitrage

I have following question, it should be pretty easy, but this subject is still pretty new for me. Given a market where calls of any strike price can be bought and sold. Assume that the interest rate ...
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### 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?
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### annuities and interest

The loan of 30.000 euros is depriciated after 10 years, with equal annuities and interest of 11% of annual capitalization. how can the annuity be determined? -this one seems to be the toughest of them ...
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### Converting an Annuity due to Annuity immediate

I'm working on the following problem at the moment while preparing for an exam. Find the present value of payments of 200 every six months starting immediately and continuing through four years from ...
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### How to find Profit percent in this case?

A trader allows a discount of 20% on his goods and still makes a profit of 25%.Find the profit percent made, if he sells his goods at: (1) the Marker price (2) at 10% discount What i've tried: ...
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### How to find cost price in a problem concerning discount?

A dealer is selling an article at a discount of 5% on the marked price. (1) What is the selling price, if the marked price is 140. (2) What is the cost price, if the marked price is 12% above the ...
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### How to find the original population if it increases with a constant rate?

The population increases by 5% every year. What was the population in 1982, if in 1985 it was 1,85220? My working: ...
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### How to find rate of depreciation in this problem?

The value of a machine is estimated to be 27,000 at the end of 1994 and 21,870 at the beginning of 1997. Supposing it depreciates at a constant rate per year of it's value at the beginning of the ...
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### 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 ...
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### How to calculate CAGR for shares bought at different times?

I have bought shares at following times: ...
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### What is the total inflation rate over a several year period given the each year inflation rate?

Consider a given inflation rates $I_1, I_2, \dots, I_N$ for years $1 \dots N$. What is the total (cumulative) inflation rate over the whole period of $N$ years? I was trying to chain-link the ...
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How can I rewrite this equation: $\hspace{2in} V_0=\frac{E_1+B_0-B_1}{(1+r)^1} + \frac{E_2+B_1-B_2}{(1+r)^2} + \frac{E_3+B_2-B_3}{1+r)^3} + \dots$ into: $... 1answer 4k views ### How to derive Gordon growth model The formula for the Gordon growth model is:$\hspace{1in}P= \sum_{t=1}^{\infty} D\times\frac{(1+g)^t}{(1+k)^t}$So summing the infinite series we get:$\hspace{1in}P=\frac{D(1+g)}{k-g} ...
Suppose you want to accumulate $12,000$ in a $5 \%$ account by making a level deposit at the beginning of each of the next 9 years. Find the required level payment. So this seems to be an annuity due ...