Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Answer the following problems

problem1) Mr A. Pilot deposits $130 at the end of each quarter for 4 years and then $80 at the end of each quarter for another 6 years, into a savings account earning 9% pa convertible quarterly. find out the amount of money that will be in the account just after Mr A. Pilot makes the final deposit of $80. Give your answer in dollars and cents to the nearest cent.

problem2) Alicia's parents wish to purchase a home costing $400,000. They have a $160,000 deposit and intend to borrow the balance from Rarepoor Bank at an interest rate of j4 = 13.6% pa compounded quarterly repayable over 15 years. find out the amount of the quarterly repayment. Give your answer in dollars and cents to the nearest cent.

problem3) Wai Man saves $3,000 at the end of each year and invests it at 10% pa effective. find out the accumulated value (S) after 14 years. Give your answer in dollars and cents to the nearest cent.

problem4) A particular rental agreement requires quarterly payments of $350 for 17 years paid in arrears. find out the present value (P) of this agreement if money is worth 14% pa convertible quarterly. Give your answer in dollars and cents to the nearest cent.

problem5) If a perpetuity paying $171.60 at the end of each year has a present value of $3,000, find the rate of interest per annum. Give your answer as a percentage per annum to 2 decimal places.

problem6) The cash price of a used car is $19,500. Dulani wishes to pay for it in 25 quarterly instalments. If an interest rate of 3% pa compounded quarterly is charged, find the size of the quarterly payment (R) payable at the end of each quarter. Give your answer in dollars and cents to the nearest cent.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M94196

Have any Question? 


Related Questions in Basic Finance

You have just performed a scenario analysis on a project

You have just performed a scenario analysis on a project, with the following results: Best Case: with a 35% probability, you get an NPV of $77 Base Case: with a 55% probability, you get an NPV of $24 Worst Case: with a 1 ...

1 the black-scholes-merton option pricing model assumes the

1. The Black-Scholes-Merton option pricing model assumes the stock price changes are lognormally distributed. Show graphically how this distribution changes when an investor is long the stock and short the call. 2 .The B ...

Assume the followingerm 7rf 2expected risk premium on

Assume the following: E(rM) = 7% rF = 2% Expected risk premium on Boeing stock = 7% What is the expected return on Boeing stock? Show your work

How many variance and covariance terms does the expression

How many variance and covariance terms does the expression of variance on a 5 asset portfolio have?

The black bird company plans an expansion the expansion is

The Black Bird Company plans an expansion. The expansion is to be financed by selling $53 million in new debt and $50 million in common stock. The before-tax required rate of return on debt is 7.01% and the required rate ...

1 what is meant by loan servicing2 identify the principal

1. What is meant by loan servicing? 2. Identify the principal sources of mortgage company income. 3. How does the Farm Credit System structure the various agencies that handle oversight of the farm mortgage lending funct ...

A small firm makes three similar products which all follow

A small firm makes three similar products, which all follow the same three-step process, consist- ing of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes for inspection, and 10 minut ...

List three ways to control preload directly what are the

List three ways to control preload directly ? What are the advantages of a bonded ultrasonic transducer? What is sometimes cited as a disadvantage? Can torque be used to tighten a 6 in. diameter bolt? If not, why not? Na ...

What are examples of money market securities provide at

What are examples of money market securities? Provide at least four examples ? What is the difference between an exchange and an over-the-counter market? What are the three forms of market efficiency? What distinguishes ...

1 describe in your words the meaning of spatialtemporal

1. Describe in your words the meaning of spatial/temporal integration in logistical system integration. 2. What justification of logic can be presented to support the placement of a warehouse in a logistical system? 3. W ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro