913 Answered Questions for the topic finance
Jack borrowed $25000 at 8% for 5 years. He also opened a sinking fund account that pays 6%. How much should he pay for the interest on his loan? What size deposit should he make to his sinking fund... more
Assume that each deposit is made at the end of every year.
You plan to retire in 30 years and decide to save $10,000 per year. If the interest rate is 6% compounded monthly, how much will you have in 30 years? Assume that each deposit is made at the end of... more
what would the single payment be?
You are supposed to make three payments, $550 in 4 months, $780 in 11 months, and $300 in 20 months. If you want to discharge your debt in 15 months with a single payment and the interest rate is... more
How much would your friend receive from the sale of the promissory note?
You borrow $5,000 at a simple 15% interest rate from your friend for 18 months in order to purchase new furniture and sign on a promissory note on your borrowing. 5 months later, your friend sells... more
Use the Banker’s rule!
Starting with $2,000 on March 3, you deposit $500 23 days from March 3, withdraw $800 69 days from March 3, and deposit $600 121 days from March 3. If your final balance is $2,458 150 days from... more
Suppose that an asset’s cash flow decreases at a constant rate of 4% per year. Use the geometric progression.
a. If the asset’s initial cash flow is $1,000 (a1 = 1000), what will the asset’s cash flow be in 23 years? (a23 = ?)b. What is the total sum of the asset’s cash flows for 50 years (starting from... more
An asset’s value was $1,439 7 days ago. If the asset’s value has uniformly increased and its value today is $1,522, what was its value 2 days ago?
An asset’s value was $1,439 7 days ago. If the asset’s value has uniformly increased and its value today is $1,522, what was its value 2 days ago? would you use geometric progression ?
Suppose that a stock’s price
Suppose that a stock’s price is $48 at the end of Day 1. If the price of the stock increases by 30% during Day 2, 20% during Day 3 and then decreases by 5% during Day 4, what is the total... more
Gen is interested in seeing how the money grows. Her mom suggests that she take the money in her piggy bank....
Gen is interested in seeing how the money grows. Her mom suggests that she takes the money in her piggy bank and deposits it in a local bank paying 8.5% compounded quarterly. IF she finds $700 in... more
Find the equivalent rate of interest for a discount rate of 7.5% for 60 days.
would i use the formula r= d/1-dn? which would be .075/1-.075(60/360) = .0625 or 6.25%
how long would it take to pay off a loan of $2,900 at 11% discount when the bank charges $638?
I am not sure what formula to use... maybe d=r/1+rn
Micheal wants his $3,200 to grow to $4,500 in 3 years. He has a saving account paying simple interest on savings.
Micheal wants his $3,200 to grow to $4,500 in 3 years. He has a saving account paying simple interest on savings. What rate of interest would help him achieve his goal?I am confused as to what... more
Suppose you were given $1000 from your uncle. You deposited that money in a bank and added $70 per month..
Suppose you were given $1000 from your uncle. You deposited that money in a bank and added $70 per month. Write an equation to model how much money you have deposited after months. Let S be the... more