Questions from Business Mathematics

Q: Payments of $8000 due 15 months ago and $6000 due

Payments of $8000 due 15 months ago and $6000 due in six months are to be replaced by a payment of $4000 today, a second payment in nine months, and a third payment, three times as large as the second...

Q: Herb packs fish in 500-g cans on a processing line

Herb packs fish in 500-g cans on a processing line. He is paid $8.25 per hour plus $0.18 per kilogram for production in excess of 500 kg in a 7.5-hour shift. How much will he earn per day if he packs...

Q: A $15,000 loan with interest being charged at 10

A $15,000 loan with interest being charged at 10% compounded quarterly was made 2 1 2 years ago and is due in two years. The debtor is proposing to settle the debt by a payment of $5000 today and a se...

Q: Three years ago, Andrea loaned $2000 to Heather. The

Three years ago, Andrea loaned $2000 to Heather. The principal with interest at 9% compounded semiannually is to be repaid four years from the date of the loan. Eighteen months ago, Heather borrowed a...

Q: A two-payment stream consisting of $1750 due today and

A two-payment stream consisting of $1750 due today and $2900 due in 18 months is to be replaced by an economically equivalent stream comprised of an undetermined payment due in 9 months and a payment...

Q: Patrice defaulted on payments of $1000 due one year ago and

Patrice defaulted on payments of $1000 due one year ago and $1500 due six months ago. A small claims court judgment orders her to make three payments—$800 one month from now, $900 four months from now...

Q: Marvin was supposed to make three payments of $2000 each—

Marvin was supposed to make three payments of $2000 each—the first one year ago, the second one year from now, and the third three years from now. He missed the first payment and proposes to pay $3000...

Q: Payments of $850 due two years ago and $1760 due

Payments of $850 due two years ago and $1760 due six months ago have not been made. The proposed alternative is two equal payments, three months and nine months from now, that will put the payee in an...

Q: Jorge is unable to make a $4500 payment due today.

Jorge is unable to make a $4500 payment due today. He proposes to settle the obligation by making three equal payments—one today, another in four months, and a third in nine months. What must each pay...

Q: The scheduled payment stream consists of $5000 due today and $

The scheduled payment stream consists of $5000 due today and $10,000 due in five years. It is proposed to replace this stream by an economically equivalent stream comprised of three equal payments due...