Questions from Business Mathematics

Q: If the loan payments and interest rate remain unchanged, will it

If the loan payments and interest rate remain unchanged, will it take longer to reduce a loan’s balance from $20,000 to $10,000 than to reduce the balance from $10,000 to $0? Explain briefly.

Q: Classifying individual costs as either purely fixed or purely variable can be

Classifying individual costs as either purely fixed or purely variable can be problematic, especially when a firm produces more than one product. Rather than determining FC and VC by analyzing each co...

Q: Jasper Ski Corp. is studying the feasibility of installing a new

Jasper Ski Corp. is studying the feasibility of installing a new chair lift to expand the capacity of its downhill-skiing operation. Site preparation would require the expenditure of $1,900,000 at the...

Q: Solve the equations. 3 x 1.025 6 +

Solve the equations. 3 x 1.025 6 + x ( 1.025 ) 8 = $2641.35

Q: A 100-day $750 note with interest at 12.

A 100-day $750 note with interest at 12.5% was written on July 15. The maker approaches the payee on August 10 to propose an early settlement. What amount should the payee be willing to accept on Augu...

Q: The calculated monthly payment on a loan amortized over five years is

The calculated monthly payment on a loan amortized over five years is rounded up by 0.2 cents to get to the nearest cent. 1. Will the adjusted final payment be more than or less than the regular payme...

Q: The payee on a three-month $2700 note earning interest

The payee on a three-month $2700 note earning interest at 8% wishes to sell the note to raise some cash. What price should she be prepared to accept for the note (dated May 19) on June 5 in order to y...

Q: The calculated monthly payment on a loan amortized over 10 years is

The calculated monthly payment on a loan amortized over 10 years is rounded down by 0.3 cents to get to the nearest cent. 1. Will the adjusted final payment be more than or less than the regular payme...

Q: A six-month note dated June 30 for $2900 bears

A six-month note dated June 30 for $2900 bears interest at 13.5%. Determine the proceeds of the note if it is discounted at 9.75% on September 1.

Q: Name four variables that affect a bond’s price. Which ones,

Name four variables that affect a bond’s price. Which ones, if any, have an inverse effect on the bond’s price? That is, for which variables does a lower value of the variable result in a higher bond...