Questions from Business Mathematics

Q: Maxine found an old pay statement from nine years ago. Her

Maxine found an old pay statement from nine years ago. Her hourly wage at the time was $13.50 versus her current wage of $20.80 per hour. At what equivalent (compound) annual rate has her wage grown o...

Q: If a company’s annual sales grew from $165,000 to

If a company’s annual sales grew from $165,000 to $485,000 in a period of eight years, what has been the compound annual rate of growth of sales during the period?

Q: What monthly compounded nominal rate would put you in the same financial

What monthly compounded nominal rate would put you in the same financial position as 5.5% compounded semiannually?

Q: You are offered a loan at a rate of 10.5

You are offered a loan at a rate of 10.5% compounded monthly. Below what figure must a semiannually compounded nominal rate be to make it more attractive?

Q: Calculate the amount that must be invested at the end of every

Calculate the amount that must be invested at the end of every six months at 3.75% compounded semiannually in order to accumulate $500,000 after 20 years.

Q: A finance company paid a furniture retailer $1934 for a conditional

A finance company paid a furniture retailer $1934 for a conditional sale contract requiring 12 end-of-month payments of $175. What effective rate of return does the finance company earn on the purchas...

Q: Howardson Electric obtained a $90,000 loan at 6.

Howardson Electric obtained a $90,000 loan at 6.75% compounded monthly. What size of semiannual payments will repay the loan in 10 years?

Q: The interest rate on a $30,000 loan is 7

The interest rate on a $30,000 loan is 7.5% compounded monthly. 1. What monthly payments are required to pay off the loan in eight years? 2. What monthly payments would be required to reduce the balan...

Q: Use N = L(1 – d), to calculate L

Use N = L(1 – d), to calculate L if N = $891 and d = 0.10.

Q: How much sooner will a $65,000 loan at 7

How much sooner will a $65,000 loan at 7.2% compounded monthly be paid off if the monthly payments are $625 instead of $600? What will be the approximate saving in (nominal) interest costs over the li...