Questions from Business Mathematics

Q: A four-year $7000 promissory note bearing interest at 10

A four-year $7000 promissory note bearing interest at 10.5% compounded monthly was discounted 18 months after issue to yield 9.5% compounded quarterly. What were the proceeds from the sale of the note...

Q: For the 10 years ended December 31, 2018, the annually

For the 10 years ended December 31, 2018, the annually compounded rate of return on the portfolio of stocks represented by the S&P/TSX Composite Index was 7.9%. For the same period, the compound annua...

Q: Rearrange the formula FV = PV(1 + i)n

Rearrange the formula FV = PV(1 + i)n to isolate PV on the left side.

Q: On February 1 of three successive years, Roger contributed $3000

On February 1 of three successive years, Roger contributed $3000, $4000, and $3500, respectively, to his RRSP. The funds in his plan earned 9% compounded monthly for the first year, 8.5% compounded qu...

Q: A loan contract called for a payment after two years of $

A loan contract called for a payment after two years of $1500 plus interest (on this $1500 only) at 8% compounded quarterly, and a second payment after four years of $2500 plus interest (on this $2500...

Q: Payments of $1800 and $2400 were made on a $

Payments of $1800 and $2400 were made on a $10,000 variable-rate loan 18 and 30 months after the date of the loan. The interest rate was 11.5% compounded semiannually for the first two years and 10.74...

Q: $6500 loan at 11.25% compounded monthly is to

$6500 loan at 11.25% compounded monthly is to be repaid by three equal payments due 3, 6, and 12 months after the date of the loan. Calculate the size of each payment.

Q: Payments of $2300 due 18 months ago and $3100 due

Payments of $2300 due 18 months ago and $3100 due in three years are to be replaced by an equivalent stream of payments consisting of $2000 today and two equal payments due two and four years from now...

Q: A $1000 face value strip bond has 19 years remaining until

A $1000 face value strip bond has 19 years remaining until maturity. What is its price if the market rate of return on such bonds is 5.9% compounded semiannually? At this market rate of return, what w...

Q: Two payments of $5000 are scheduled six months and three years

Two payments of $5000 are scheduled six months and three years from now. They are to be replaced by a payment of $3000 in two years, a second payment in 42 months, and a third payment, twice as large...