Questions from Business Mathematics

Q: Calculate and rank the economic values of the following cash flow streams

Calculate and rank the economic values of the following cash flow streams: (i) A single payment of $10,000 eight years from now. (ii) An annuity due starting today with eight annual payments of $850....

Q: Using a discount rate of 6% compounded monthly, calculate the

Using a discount rate of 6% compounded monthly, calculate the present value of monthly payments of $325 for 7 1 4 years if the payments are made: 1. At the end of each month. 2. At the beginning of ea...

Q: Two insurance companies gave the following quotations on premiums for essentially the

Two insurance companies gave the following quotations on premiums for essentially the same long-term disability insurance coverage for a 25-year-old. East Coast Insurance Co. quoted monthly premiums o...

Q: The lease on the premises occupied by the accounting firm of Heath

The lease on the premises occupied by the accounting firm of Heath and Company will soon expire. The current landlord is offering to renew the lease for seven years at $2100 per month. The developers...

Q: What is the present value of an annuity due consisting of semiannual

What is the present value of an annuity due consisting of semiannual payments of $1000 for 25 years if money can earn: 1. 4% compounded semiannually? 2. 8% compounded semiannually?

Q: Money can earn 6% compounded monthly. What is the present

Money can earn 6% compounded monthly. What is the present value of beginning-of-month payments of $100 if the payments continue for: 1. 25 years? 2. 30 years?

Q: On the date of its financial statements, a company has 4

On the date of its financial statements, a company has 4 1 2 years remaining on the lease of a truck. The lease requires payments of $3000 at the beginning of every six months. What book value is repo...

Q: If money can earn 5.25% compounded monthly, what

If money can earn 5.25% compounded monthly, what is the value of an annuity consisting of annual payments of $2500 continuing for 16 years? The first payment will be received today.

Q: Carmella purchased a refrigerator under a conditional sale contract that required 30

Carmella purchased a refrigerator under a conditional sale contract that required 30 monthly payments of $60.26 with the first payment due on the purchase date. The interest rate on the outstanding ba...

Q: The assessment on a farm consists of $143,000 for

The assessment on a farm consists of $143,000 for the house and $467,000 for the land and buildings. A mill rate of 15.0294 applies to residences, and a rate of 4.6423 applies to agricultural land and...