Questions from Business Mathematics

Q: Commercial Finance Co. buys conditional sale contracts from furniture retailers at

Commercial Finance Co. buys conditional sale contracts from furniture retailers at discounts that provide a 16.5% compounded monthly rate of return on the purchase price. What total price should Comme...

Q: Teresita has three financial obligations to the same person: $2700

Teresita has three financial obligations to the same person: $2700 due in 1 year, $1900 due in 1 1 2 years, and $1100 due in 3 years. She wishes to settle the obligations with a single payment in 2 1...

Q: A $15,000 loan at 5.5% compounded

A $15,000 loan at 5.5% compounded semiannually is advanced today. Two payments of $4000 are to be made one year and three years from now. The balance is to be paid in five years. What will the third p...

Q: A $4000 loan at 10% compounded monthly is to be

A $4000 loan at 10% compounded monthly is to be repaid by three equal payments due 5, 10, and 15 months from the date of the loan. What is the size of the payments?

Q: A $10,000 loan at 4% compounded semiannually is

A $10,000 loan at 4% compounded semiannually is to be repaid by three equal payments due 2 1 2 , 4, and 7 years after the date of the loan. What is the size of each payment?

Q: Lucille receives an annual salary of $37,500 based on

Lucille receives an annual salary of $37,500 based on a 37.5-hour workweek. What are her gross earnings for a 2-week pay period in which she works 9 hours of overtime at 1.5 times her regular rate of...

Q: A $6000 loan at 9% compounded quarterly is to be

A $6000 loan at 9% compounded quarterly is to be settled by two payments. The first payment is due after nine months and the second payment, half the amount of the first payment, is due after 1 1 2 ye...

Q: A $7500 loan at 4% compounded monthly requires three payments

A $7500 loan at 4% compounded monthly requires three payments at five-month intervals after the date of the loan. The second payment is to be twice the size of the first payment, and the third payment...

Q: Three equal payments were made two, four, and six years

Three equal payments were made two, four, and six years after the date on which a $9000 loan was granted at 10% compounded quarterly. If the balance immediately after the third payment was $5169.81, w...

Q: Repeat Problem 31 with the change that each contract accrues interest from

Repeat Problem 31 with the change that each contract accrues interest from today at the rate of 12% compounded monthly. Data from Problem 31: Commercial Finance Co. buys conditional sale contracts fr...