Questions from Business Mathematics

Q: One year ago, Jasmin and Derek opened investment accounts with a

One year ago, Jasmin and Derek opened investment accounts with a discount broker. In their C$ account, they purchased 300 Bank of Montreal (BMO) shares at C$54.20 per share and six Government of Canad...

Q: Rocky Mountain Bus Tours needs an additional bus for three years.

Rocky Mountain Bus Tours needs an additional bus for three years. It can lease a bus for $2100 payable at the beginning of each month, or it can buy a similar bus for $120,000, using financing at the...

Q: Jason’s gross pay for August is $3296.97 on sales

Jason’s gross pay for August is $3296.97 on sales totalling $151,342. If his base salary is $1500 per month, what is his rate of commission on sales exceeding his monthly quota of $100,000?

Q: By calculating the maturity value of $100 invested for one year

By calculating the maturity value of $100 invested for one year at each rate, determine which rate of return an investor would prefer. 1. 3.0% compounded monthly 2. 3.1% compounded quarterly 3. 3.2% c...

Q: If money can be invested to earn 2.5% compounded

If money can be invested to earn 2.5% compounded annually, how much would have to be invested today to grow to $10,000 after: 1. 10 years? 2. 20 years? 3. 30 years?

Q: Ross has just been notified that the combined principal and interest on

Ross has just been notified that the combined principal and interest on an amount that he borrowed 27 months ago at 11% compounded quarterly is now $2297.78. How much of this amount is principal and h...

Q: Your client has a choice of either receiving $5000 two years

Your client has a choice of either receiving $5000 two years from now or receiving a lump payment today. If your client can earn 5.4% compounded semiannually, what amount received today is equivalent...

Q: You owe $6000 payable three years from now. What alternative

You owe $6000 payable three years from now. What alternative amount should your creditor be willing to accept today if she can earn 4.2% compounded monthly on a low-risk investment?

Q: What amount 1 1 2 years from now is equivalent to $

What amount 1 1 2 years from now is equivalent to $7000 due in 8 years if money can earn 6.2% compounded semiannually?

Q: A payment of $1300 is scheduled for a date 3 1

A payment of $1300 is scheduled for a date 3 1 2 years from now. What would be an equivalent payment nine months from now if money is worth 5.5% compounded quarterly?