Questions from Business Mathematics

Q: A payment stream consists of three payments: $1000 due today

A payment stream consists of three payments: $1000 due today, $1500 due 70 days from today, and $2000 due 210 days from today. What single payment, 60 days from today, is economically equivalent to th...

Q: Express decimal and percent equivalent forms to five-figure accuracy.

Express decimal and percent equivalent forms to five-figure accuracy. 2 2 100

Q: What single payment, made 45 days from now, is economically

What single payment, made 45 days from now, is economically equivalent to the combination of three equal payments of $1750 each: one due 75 days ago, the second due today, and the third due 75 days fr...

Q: Two payments of $2000 each are to be received 6 and

Two payments of $2000 each are to be received 6 and 12 months from now. If money is worth 5%, what is the total equivalent value of the payments: 1. Today? 2. Six months from today? 3. Explain why the...

Q: Two payments of $3000 each are due in 50 and 100

Two payments of $3000 each are due in 50 and 100 days. What is their combined economic value today if money can earn: 1. 9%? 2. 11%? 3. Explain why the answer in part (b) is smaller.

Q: A payment of $850 scheduled to be paid today and a

A payment of $850 scheduled to be paid today and a second payment of $1140 to be paid nine months from today are to be replaced by a single equivalent payment. What total payment made today would plac...

Q: 1. What will be the maturity value of $15,

1. What will be the maturity value of $15,000 placed in a 120-day term deposit paying an interest rate of 2.25%? 2. If, on the maturity date, the combined principal and interest are “rolled over” into...

Q: A savings account pays interest of 1.5%. Interest is

A savings account pays interest of 1.5%. Interest is calculated on the daily closing balance and paid at the close of business on the last day of the month. A depositor had a $2239 opening balance on...

Q: Joan has savings of $12,000 on June 1.

Joan has savings of $12,000 on June 1. Since she may need some of the money during the next three months, she is considering two options at her bank. (1) An Investment Builder account earns a 2.25% ra...

Q: Suppose that the current rates on 90- and 180-day

Suppose that the current rates on 90- and 180-day GICs are 3.25% and 3.50%, respectively. An investor is weighing the alternatives of purchasing a 180-day GIC versus purchasing a 90-day GIC and then r...