Questions from Business Mathematics


Q: Danica wants to deposit a cheque for $5000 into her premium

Danica wants to deposit a cheque for $5000 into her premium-rate savings account that pays interest of 2.25%. Interest is calculated on the daily closing balance and paid at the close of business on t...

See Answer

Q: A Super Saver savings account pays interest of 2.15%.

A Super Saver savings account pays interest of 2.15%. Interest is calculated on the daily closing balance and paid at the close of business on the last day of the month. How much interest will be lost...

See Answer

Q: A high-rate savings account pays interest of 3.05

A high-rate savings account pays interest of 3.05%. 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 $7255 opening...

See Answer

Q: Hillary sells cosmetics from her part-time home-based business

Hillary sells cosmetics from her part-time home-based business. She receives a straight commission of 21% from her supplier. At the year-end, she also receives a 7% bonus on sales exceeding her annual...

See Answer

Q: An investment promises two payments of $500, on dates three

An investment promises two payments of $500, on dates three and six months from today. If the required rate of return on the investment is 4%: 1. What is the value of the investment today? 2. What wil...

See Answer

Q: An investment promises two payments of $1000, on dates 60

An investment promises two payments of $1000, on dates 60 and 90 days from today. What price will an investor pay today: 1. If her required rate of return is 10%? 2. If her required rate of return is...

See Answer

Q: Certificate A pays $1000 in four months and another $1000

Certificate A pays $1000 in four months and another $1000 in eight months. Certificate B pays $1000 in five months and another $1000 in nine months. If the current rate of return required on this type...

See Answer

Q: A contract requires payments of $1500, $2000, and

A contract requires payments of $1500, $2000, and $1000 in 100, 150, and 200 days, respectively, from today. What is the value of the contract today if the payments are discounted to yield a 10.5% ra...

See Answer

Q: An agreement stipulates payments of $4000, $2500, and

An agreement stipulates payments of $4000, $2500, and $5000 in three, six, and nine months, respectively, from today. What is the highest price an investor will offer today to purchase the agreement i...

See Answer

Q: An assignable loan contract executed three months ago requires two payments to

An assignable loan contract executed three months ago requires two payments to be paid five and ten months after the contract date. Each payment consists of a principal portion of $1800 plus interest...

See Answer