Questions from Business Mathematics

Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = ? Term = 9 months Legal due date = Oct 3

Q: If an ordinary annuity with quarterly payments and a 5 1 2

If an ordinary annuity with quarterly payments and a 5 1 2 -year term began June 1, 2020, what are the dates of the first and last payments?

Q: Suppose the discount rate used to calculate the present value of an

Suppose the discount rate used to calculate the present value of an annuity is increased (leaving n and PMT unchanged). Will the annuity’s present value be (pick one): (i) larger or (ii) smaller than...

Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = ? Term = 180 days Legal due date = Sept 2

Q: Think of a 20-year annuity paying $2000 per month

Think of a 20-year annuity paying $2000 per month. If prevailing market rates decline over the next year, will the price to purchase a 20-year annuity increase or decrease? Explain.

Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = ? Term = 60 days Legal due date = March 1 (leap year)

Q: Suppose you choose to pay off a loan over 10 years instead

Suppose you choose to pay off a loan over 10 years instead of 5 years. The principal and interest rate are the same in both cases. Will the payment for the 10-year term be: (i) Half the payment for th...

Q: Solve the equations. ( 1.065 ) 2 x

Solve the equations. ( 1.065 ) 2 x − x 1.065 = $ 35

Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = April 30 Face value ($) = 1000 Term = 4 months Interest rate (%) = 9.50 Maturity value ($) = ?

Q: You intend to accumulate $100,000 in 10 years instead

You intend to accumulate $100,000 in 10 years instead of 20 years by making equal monthly investment contributions. Will the monthly contribution for a 10-year plan be: (i) Twice the monthly contribut...