Questions from Business Mathematics

Q: Kent sold his car to Carolyn for $2000 down and monthly

Kent sold his car to Carolyn for $2000 down and monthly payments of $295.88 for 3 1 2 years, including interest at 7.5% compounded monthly. What was the selling price of the car?

Q: Manuel purchased a boat for $2000 down with the balance to

Manuel purchased a boat for $2000 down with the balance to be paid by 36 monthly payments of $224.58 including interest at 10% compounded monthly. 1. What was the purchase price of the boat? 2. What i...

Q: A conditional sale contract between Classic Furniture and the purchaser of a

A conditional sale contract between Classic Furniture and the purchaser of a dining room set requires month-end payments of $250 for 15 months. Classic Furniture sold the contract to Household Finance...

Q: Osgood Appliance Centre is advertising refrigerators for six monthly payments of $

Osgood Appliance Centre is advertising refrigerators for six monthly payments of $199, including a payment on the date of purchase. What cash price should Osgood accept if it would otherwise sell the...

Q: The Ottawa Senators fired their coach two years into his five-

The Ottawa Senators fired their coach two years into his five-year contract, which paid him $90,000 at the end of each month. If the team owners buy out the remaining term of the coach’s contract for...

Q: The Montreal Canadiens have just announced the signing of Finnish hockey sensation

The Montreal Canadiens have just announced the signing of Finnish hockey sensation Gunnar Skoroften to a 10-year contract at $3 million per year. The media are reporting the deal as being worth $30 mi...

Q: Your client has the following choices for an insurance benefit: She

Your client has the following choices for an insurance benefit: She can receive $2000 at the end of each year for the next five years or one lump sum today. If the current interest rate is 4.5% compou...

Q: This problem demonstrates the dependence of the present value of an annuity

This problem demonstrates the dependence of the present value of an annuity on the discount rate. For an ordinary annuity consisting of 20 annual payments of $1000, calculate the present value using a...

Q: You can purchase a residential building lot for $90,000

You can purchase a residential building lot for $90,000 cash, or for $20,000 down and quarterly payments of $5000 for four years. The first payment would be due three months after the purchase date. I...

Q: You have received two offers on the used car you wish to

You have received two offers on the used car you wish to sell. Mr. Lindberg is offering $9500 cash, and Mrs. Martel’s offer is five semiannual payments of $2000, including one on the purchase date. Wh...