Questions from Business Mathematics

Q: What amount 15 months ago is equivalent to $2600 one and

What amount 15 months ago is equivalent to $2600 one and a half years from now? Assume money can earn 5.4% compounded monthly.

Q: Mustafa can receive a $77 discount if he pays his property

Mustafa can receive a $77 discount if he pays his property taxes early. Alternatively, he can pay the full amount of $2250 when payment is due in nine months. Which alternative is to his advantage if...

Q: What single amount, paid three years from now, would be

What single amount, paid three years from now, would be economically equivalent to the combination of $1400 due today and $1800 due in five years if funds can be invested to earn 3% compounded quarter...

Q: Daniella’s gross monthly earnings are based on commission rates of 4%

Daniella’s gross monthly earnings are based on commission rates of 4% on the first $40,000 of sales, 5% on the next $50,000, and 6% on all additional sales for the month. What is her sales total for a...

Q: Ramon wishes to replace payments of $900 due today and $

Ramon wishes to replace payments of $900 due today and $500 due in 22 months by a single equivalent payment 18 months from now. If money is worth 5% compounded monthly, what should that payment be?

Q: Mohinder has financial obligations of $1000 due in 3 1 2

Mohinder has financial obligations of $1000 due in 3 1 2 years and $2000 due in 5 1 2 years. He wishes to settle the obligations sooner with a single payment one year from now. If money is worth 2.75%...

Q: What amount would have to be invested today for the future value

What amount would have to be invested today for the future value to be $10,000 after 20 years if the rate of return is: 1. 5% compounded quarterly? 2. 7% compounded quarterly? 3. 9% compounded quarter...

Q: What payment 2 1 4 years from now would be a fair

What payment 2 1 4 years from now would be a fair substitute for the combination of $1500 due (but not paid) nine months ago and $2500 due in 4 1 2 years if money can earn 9% compounded quarterly?

Q: What single payment six months from now would be economically equivalent to

What single payment six months from now would be economically equivalent to payments of $500 due (but not paid) four months ago and $800 due in 12 months? Assume money can earn 2.5% compounded monthly...

Q: What single payment one year from now would be equivalent to $

What single payment one year from now would be equivalent to $2500 due in three months, and another $2500 due in two years? Money is worth 7% compounded quarterly.