Questions from Business Mathematics

Q: Evaluate values of the variables. Calculate the result accurate to the

Evaluate values of the variables. Calculate the result accurate to the nearest cent. I ÷ Pr for P = $500, I = $13.75, r = 0.11

Q: The Graftons can afford a maximum mortgage payment of $1000 per

The Graftons can afford a maximum mortgage payment of $1000 per month. The current interest rate is 7.2% compounded semiannually. What is the maximum mortgage loan they can afford if the amortization...

Q: The Tarkanians can afford a maximum mortgage payment of $1000 per

The Tarkanians can afford a maximum mortgage payment of $1000 per month. What is the maximum mortgage loan they can afford if the amortization period is 25 years and the interest rate is: 1. 4.5% comp...

Q: A $100,000 mortgage loan at 7.6%

A $100,000 mortgage loan at 7.6% compounded semiannually has a 25-year amortization period. 1. Calculate the monthly payment. 2. If the interest rate were 1% lower (that is, 6.6% compounded semiannual...

Q: The Switzers are nearing the end of the first five-year

The Switzers are nearing the end of the first five-year term of a $100,000 mortgage loan with a 25-year amortization. The interest rate has been 6.5% compounded semiannually for Page 560 the initial t...

Q: The Melnyks are nearing the end of the first three-year

The Melnyks are nearing the end of the first three-year term of a $100,000 mortgage loan with a 20-year amortization. The interest rate has been 7.7% compounded semiannually for the initial term. How...

Q: The interest rate for the first three years of an $80

The interest rate for the first three years of an $80,000 mortgage loan is 7.4% compounded semiannually. Monthly payments are calculated using a 25-year amortization. 1. What will be the principal bal...

Q: Calculate the purchase price of each of the $1000 face value

Calculate the purchase price of each of the $1000 face value bonds. Issue date = June 1, 2010 Maturity date = June 1, 2030 Purchase date = June 1, 2016 Coupon rate (%) = 5.75 Market rate (%) = 4.5

Q: Bernard purchased a $50,000 bond carrying a 4.

Bernard purchased a $50,000 bond carrying a 4.5% coupon rate when it had 8 years remaining until maturity. What price did he pay if the prevailing rate of return on the purchase date was 5.2% compound...

Q: A $1000, 6.5% coupon bond has 13

A $1000, 6.5% coupon bond has 13 1 2 years remaining until maturity. Calculate the bond premium if the required return in the bond market is 5.5% compounded semiannually.