Questions from Business Mathematics

Q: The MSRP for a BMW 528i is $58,499.

The MSRP for a BMW 528i is $58,499. The monthly payment on a 48-month lease at 1.9% compounded monthly is $697. The residual value at the end of the lease is $21,000. Rounded to the nearest dollar, wh...

Q: Evaluate values of the variables. Calculate the result accurate to the

Evaluate values of the variables. Calculate the result accurate to the nearest cent. S ( 1 + i ) n for S = $850, i = 0.0075, n = 6

Q: RentalTown advertised a computer system at a cash price of $1699

RentalTown advertised a computer system at a cash price of $1699 and at a rent-to-own rate of $129 at the beginning of each month for 24 months. What effective rate of interest is a customer paying to...

Q: Kim wants to save half of the $30,000 purchase

Kim wants to save half of the $30,000 purchase price of a new car by making monthly deposits of $700, beginning today, into a T-bill savings account earning 4.2% compounded monthly. How long will it t...

Q: Central Personnel’s accountant set up a long-term lease liability of

Central Personnel’s accountant set up a long-term lease liability of $11,622.73 to recognize a new contract for the lease of office furniture. She used the firm’s 10.5% monthly compounded cost of borr...

Q: The payments required on a contractual obligation are $500 per month

The payments required on a contractual obligation are $500 per month. The contract was purchased for $13,372 just before a regular payment date. The purchaser determined this price based on his requir...

Q: How long will it take an RRSP to grow to $600

How long will it take an RRSP to grow to $600,000 if it receives a contribution of $2500 at the beginning of each quarter and it earns: 1. 3% compounded quarterly? 2. 6% compounded quarterly? 3. 8% co...

Q: How much longer will a $100,000 fund earning 9

How much longer will a $100,000 fund earning 9% compounded monthly sustain beginning-of-month withdrawals of $900 than beginning-of-month withdrawals of $1000?

Q: How many fewer deposits will it take to accumulate savings of $

How many fewer deposits will it take to accumulate savings of $100,000 with beginning-of-month deposits of $220 than with beginning-of-month deposits of $200? The savings earn 5.4% compounded monthly....

Q: If a furniture retailer offers a financing plan on a $1500

If a furniture retailer offers a financing plan on a $1500 purchase requiring four equal quarterly payments of $400 including the first payment on the purchase date, what effective rate of interest is...