Questions from Business Mathematics

Q: A $4000 loan at 7.5% compounded monthly was

A $4000 loan at 7.5% compounded monthly was settled by a single payment of $5000 including accrued interest. Rounded to the nearest day, how long after the initial loan was the $5000 payment made? For...

Q: If money is worth 8% compounded quarterly, how long (

If money is worth 8% compounded quarterly, how long (to the nearest day) before a scheduled payment of $6000 will $5000 be an equivalent payment? For the purpose of determining the number of days in a...

Q: Wilf paid $557.05 for a $1000 face value

Wilf paid $557.05 for a $1000 face value strip bond. At this price the investment will yield a return of 5.22% compounded semiannually. How long (to the nearest day) before its maturity date did Wilf...

Q: A $5000 face value strip bond may be purchased today for

A $5000 face value strip bond may be purchased today for $1073.36 yielding the purchaser 7.27% compounded semiannually. How much time (to the nearest day) remains until the maturity date? Assume that...

Q: $7500 was borrowed for a four-year term at 9

$7500 was borrowed for a four-year term at 9% compounded quarterly. The terms of the loan allow prepayment of the loan based on discounting the loan’s maturity value at 7% compounded quarterly. How lo...

Q: $5000 invested in a GIC earning 3.7% compounded

$5000 invested in a GIC earning 3.7% compounded semiannually matured at $5789.73. What was the term of the GIC?

Q: The current balance on a loan is $3837.30.

The current balance on a loan is $3837.30. If the interest rate on the loan is 10% compounded monthly, how long ago was the $2870 loan made?

Q: Marilyn was supposed to pay $1450 to Bernice on March 1

Marilyn was supposed to pay $1450 to Bernice on March 1. Some time later Marilyn paid Bernice an equivalent payment of $1528.01, allowing for a time value of money of 4.5% compounded monthly. When did...

Q: What is the remaining time until the maturity date of a $

What is the remaining time until the maturity date of a $10,000 strip bond if it is purchased for $4011.33 to yield 6.4% compounded semiannually until maturity?

Q: Suppose a group of consumers spend 30% of their disposable income

Suppose a group of consumers spend 30% of their disposable income on food, 20% on clothing, and 50% on rent. If over the course of a year the price of food rises 10%, the price of clothing drops 5%, a...