Questions from Business Mathematics

Q: Noel has $300,000 with which to purchase an ordinary

Noel has $300,000 with which to purchase an ordinary annuity delivering monthly payments for 20 years after a 10-year period of deferral. What monthly payment will he receive, if the undistributed fun...

Q: If money can earn 6.5% compounded annually for the

If money can earn 6.5% compounded annually for the next 20 years, which of the following annuities has the greater economic value today: $1000 paid at the end of each of the next 10 years, or 10 annua...

Q: Negotiations between Delco Manufacturing and the union representing its employees are at

Negotiations between Delco Manufacturing and the union representing its employees are at an impasse. The union is seeking a 4.5% wage increase. Delco’s offer is 2%. The employees have passed a vote au...

Q: A $35,000 loan bearing interest at 5% compounded

A $35,000 loan bearing interest at 5% compounded quarterly was repaid, after a period of deferral, by quarterly payments of $1573.83 over 12 years. What was the time interval between the date of the l...

Q: A life insurance company can invest funds to earn (after expenses

A life insurance company can invest funds to earn (after expenses) 8% compounded quarterly. A client wishes to purchase a five-year ordinary annuity that will commence 3 1 2 years from now. What will...

Q: A finance company paid a merchant $3975 for a conditional sale

A finance company paid a merchant $3975 for a conditional sale contract after discounting it to yield 18% compounded monthly. If the contract is for 20 monthly payments of $256.96 following a payment-...

Q: Vencap Enterprises is evaluating an investment opportunity that can be purchased for

Vencap Enterprises is evaluating an investment opportunity that can be purchased for $55,000. Further product development will require contributions of $30,000 in Year 1 and $10,000 in Year 2. Returns...

Q: Simplify and collect the like terms. 8 x 0.

Simplify and collect the like terms. 8 x 0.5 + 5.5 x 11 + 0.5 ( 4.6 x − 17 )

Q: A $10,000 investment will be allowed to grow at

A $10,000 investment will be allowed to grow at 4.5% compounded semiannually until it can support semiannual withdrawals of $1000 for 20 years. Rounded to the nearest month, how long before the first...

Q: Mrs. Corriveau has just retired at age 58 with $160

Mrs. Corriveau has just retired at age 58 with $160,360 in her RRSP. She plans to live off other savings for a few years and allow her RRSP to continue to grow on a tax-deferred basis until there is a...