Questions from Business Mathematics

Q: Suppose an individual invests $1000 at the beginning of each year

Suppose an individual invests $1000 at the beginning of each year for the next 30 years. Thirty years from now, how much more will the first $1000 investment be worth than the 16th $1000 investment if...

Q: A $5000 payment due 1 1 2 years ago has not

A $5000 payment due 1 1 2 years ago has not been paid. If money can earn 3.25% compounded annually, what amount paid 2 1 2 years from now would be the economic equivalent of the missed payment?

Q: What is the future value of $8500 after 5 1 2

What is the future value of $8500 after 5 1 2 years if it earns 9.5% compounded quarterly?

Q: What amount three years from now is equivalent to $3000 due

What amount three years from now is equivalent to $3000 due five months from now? Assume that money can earn 7.5% compounded monthly.

Q: What amount today is equivalent to $10,000 four years

What amount today is equivalent to $10,000 four years ago, if money earned 5.5% compounded monthly over the last four years?

Q: What amount two years from now will be equivalent to $2300

What amount two years from now will be equivalent to $2300 at a date 1 1 2 years ago, if money earns 6.25% compounded semiannually during the intervening time?

Q: Payments of $1300 due today and $1800 due in 1

Payments of $1300 due today and $1800 due in 1 3 4 years are to be replaced by a single payment four years from now. What is the amount of that payment if money is worth 2% compounded quarterly?

Q: Bjorn defaulted on payments of $2000 due three years ago and

Bjorn defaulted on payments of $2000 due three years ago and $1000 due 1 1 2 years ago. What would a fair settlement to the payee be 1 1 2 years from now, if the money could have been invested in low-...

Q: Julio is paid on a graduated commission scale of 5% on

Julio is paid on a graduated commission scale of 5% on the first $20,000 of sales in a month, 7.5% on the next $20,000, and 10% on all additional sales. 1. What is he paid for a month in which his sal...

Q: Faisal borrowed $3000, $3500, and $4000 from

Faisal borrowed $3000, $3500, and $4000 from his father on January 1 of three successive years at college. Faisal and his father agreed that interest would accumulate on each amount at the rate of 5%...