Questions from Business Mathematics


Q: Other things being equal, why is the future value of an

Other things being equal, why is the future value of an annuity due larger than the future value of an ordinary annuity?

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Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = Dec 31 Face value ($) = 5200 Term = ? Interest rate (%) = 11.00 Maturity value ($) = 5275.22

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Q: For the present value of an annuity due, where is the

For the present value of an annuity due, where is the focal date located relative to the first payment?

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Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = March 30 Face value ($) = 9400 Term = ? Interest rate (%) = 9.90 Maturity value ($) = 9560.62

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Q: Other things being equal, why is the present value of an

Other things being equal, why is the present value of an annuity due larger than the present value of an ordinary annuity?

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Q: Calculate the missing values for the promissory notes described. Face

Calculate the missing values for the promissory notes described. Face value ($) = 1000 Issue date = March 30 Interest rate (%) = 0 Term = 50 days Date of Sale = April 8 Discount Rate (%) = 10 Proceeds...

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Q: If the periodic interest rate for a payment interval is 3%,

If the periodic interest rate for a payment interval is 3%, by what percentage will PV(due) exceed PV?

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Q: Calculate the missing values for the promissory notes described. Face

Calculate the missing values for the promissory notes described. Face value ($) = 6000 Issue date = May 17 Interest rate (%) = 0 Term = 3 months Date of Sale = June 17 Discount Rate (%) = 9 Proceeds =...

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Q: Other factors being equal, is the PV of an annuity due

Other factors being equal, is the PV of an annuity due larger if the given nominal discount rate is compounded monthly instead of annually? Explain briefly.

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Q: Solve the equations. x 1.1 2 + 2

Solve the equations. x 1.1 2 + 2 x ( 1.1 ) 3 = $1000

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