Questions from Business Mathematics

Q: Payments of $400 due eight months ago and $650 due

Payments of $400 due eight months ago and $650 due three months ago were not made. Now the debtor is proposing to “make good” by two future payments that provide for a 7.5% compounded monthly rate of...

Q: Two payments of $2000 each are scheduled for six months from

Two payments of $2000 each are scheduled for six months from now and two years from now. They are to be rescheduled as follows: a payment one year from now and a second payment, half the size of the f...

Q: Ralph Harder has been transferred to Regina for five years. He

Ralph Harder has been transferred to Regina for five years. He has found a one-bedroom condo that he can buy for $180,000 or rent for $1000 per month, payable at the beginning of each month. He estima...

Q: Svetlana is an independent insurance broker placing various clients with any of

Svetlana is an independent insurance broker placing various clients with any of several insurance companies. On homeowner insurance policies, each month she receives: - $20 for each renewal of an exis...

Q: No payments were made on a $3400 loan during its three

No payments were made on a $3400 loan during its three-year term. What was the annually compounded nominal interest rate on the loan, if the amount owed at the end of the term was $4297.91?

Q: Mr. and Mrs. Markovich note that the condo they purchased

Mr. and Mrs. Markovich note that the condo they purchased 20 years ago for $70,000 is now appraised at $340,000. What was the (equivalent) annual rate of appreciation in the value of their condo durin...

Q: Jan and Chelsea purchased their home 15 years ago for $198

Jan and Chelsea purchased their home 15 years ago for $198,000 and it is now appraised at $430,000. What was the (equivalent) annual rate of appreciation in the value of their home during the 15-year...

Q: The maturity value of a $5000 four-year compound interest

The maturity value of a $5000 four-year compound interest GIC was $6147.82. What quarterly compounded rate of interest did it earn?

Q: Three years ago Mikhail invested $7000 in a three-year

Three years ago Mikhail invested $7000 in a three-year compound interest GIC. He has just received its maturity value of $7867.34. What was the monthly compounded rate of interest on the GIC?

Q: 1. The population of Canada grew from 24,343,

1. The population of Canada grew from 24,343,000 in 1981 to 37,268,000 in 2019. What was the overall compound annual rate of growth in our population during the period? 2. According to the Canadian Re...