Questions from Business Mathematics

Q: Influence of Annuity Variables Go to the Student Edition on Connect.

Influence of Annuity Variables Go to the Student Edition on Connect. Under the Student Resources, you will find a link to the “Influence of Annuity Variables” chart. This interactive chart enables yo...

Q: A baseball player’s slugging percentage is the average number of hits a

A baseball player’s slugging percentage is the average number of hits a batter gets in all the “at bats” they have in their games played. This statistic differs from their batting average in that it i...

Q: Determine the present value of end-of-month payments of

Determine the present value of end-of-month payments of $75 continuing for 2 1 2 years. Use 8% compounded monthly as the discount rate.

Q: How much will it cost to purchase an ordinary annuity delivering semiannual

How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for 12 1 2 years if the money used to purchase the annuity can earn 7.5% compounded semiannually?

Q: A contract requires end-of-month payments of $175

A contract requires end-of-month payments of $175 for another 8 1 4 years. What would an investor pay to purchase this contract if she requires a rate of return of 3% compounded monthly?

Q: A new loan at 9% compounded quarterly requires quarterly payments of

A new loan at 9% compounded quarterly requires quarterly payments of $727.88 for seven years. Rounded to the nearest dollar, what amount was borrowed?

Q: Semiannual payments of $1240 will pay off the balance owed on

Semiannual payments of $1240 will pay off the balance owed on a loan in 9 1 2 years. If the interest rate on the loan is 5.9% compounded semiannually, what is the current balance on the loan?

Q: The nominal interest rate associated with an ordinary general annuity is 3

The nominal interest rate associated with an ordinary general annuity is 3% compounded annually. Rounded to the nearest 0.001%, what is the corresponding periodic rate of interest that matches the pay...

Q: Payments of $1500 will be made at the end of every

Payments of $1500 will be made at the end of every quarter for 13 1 2 years. Using a nominal rate of 7.5% compounded semiannually, calculate the annuity’s: 1. Present value. 2. Future value.

Q: Payments of $3500 will be made at the end of every

Payments of $3500 will be made at the end of every year for 17 years. Using a nominal rate of 5.25% compounded monthly, calculate the annuity’s: 1. Present value. 2. Future value.