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Financial Math

Determine the value of: 60 000 x 80 000 – 5 000 + 120 000 ÷ 15 000

4 800 000 000 – 5 000 + 8 = 4 799 995 008

Financial Math

Consider the following small open economy model with production. At dates 1 and 2, the home country receives exogenous fixed endowments y_{1 }and y_{2 }respectively. The home country has access to the international capital market at a fixed interest rate r* at which it can save or borrow. Let the net saving of the home country be s1 and its consumption stream in two periods be given by

c_{1} and c_{2 }respectively.the following maximization problem:

Max ln c_{1 } + ln c_{2}

s.t. C_{1 }+ _{ }S_{1 }= Y_{1}

C_{2 }= C_{1}(1+r*) + Y_{2}

Derive optimal consumption and current account functions and carefully interpret it in terms of a two-period Fisherian graph.

Refer to (a). Suppose the home country also has an access to an investment

technology which means that if it invests k units at date 1, it produces y2 = Ak^{a }units of output

in the next period where A >0 and 0 < a< 1 . Modify budget constraints for (a)Derive the optimal investment and saving rules for this

economy assuming the same logarithmic utility function as in (a). Interpret your results

Financial Math

Matome borrows R4 050 for eight months from a lender who charges a 11% discount rate. How much money does Matome receive?

Financial Math

An amount of R3 450 earns simple interest and accumulates to R5623, 50 after seven years. Had the yearly interest rate been 2% more, how much interest would he have accumulated in seven years

Financial Math

Mr Mangena invested an amount of R13890 divided in two different schemes A and B, at the simple interest rate of 14% per annum and 11% per annum respectively. If the total amount of simple interest earned in three years is R5 508. What was the amount invested in scheme B

Financial Math

a truck is used to transport some wood panels. each wood panel is cuboid measuring 2.4m by 1.2m by 1.8cm. the density of each wood panel is 750 kg/m3. the truck can carry 15 tonnes of those wood panels. calculate the maximum number of wood panels that the truck can carry.

Financial Math

Activity: Amortization Payment

4. UCPB is offering mortgages at 9% interest. What

monthly payments would be required to amortize a loan of P2,000,000 for 15

years?

5. A debt of P40,000 is to be amortized by equal

payments at the end of every quarter for 1 ½ years. If the interest charged is

12% compounded quarterly, find the outstanding principal after each payment is

made. For this item, construct an amortization table.

Financial Math

Activity: Amortization Payment

Cedric purchased a new fishing boat for

P130,000. He made a P20,000 down payment, and financed the balance at his bank

for 7 years. What amortization payments are required every 3 months, at 16%

interest, to pay off the boat loan?

2.Cameron Manufacturing recently purchased a new

computer system for P150,000. What amortization payment is required each month,

at 12% interest, to pay off this obligation in 8 years?

3The Clintons bought a home for P12,050,000.

After a 15% down payment, the balance is financed at 8% interest for 9 years.

(a) What equal quarterly payments will be required to amortize this mortgage

loan? (b) What is the total amount of interest the Clintons will pay on the

loan?

Financial Math

PV of annuity due

5) find the present value of annuity due of 7,000 payable at the beginning of each quarter for six years if the interest rate is 14% compounded quarterly.

6) what is the cash prize of a freezer than can be bought for 7500 a quarter for 2&1/2 if the interest payment is made now and the interest rate is 7%compounded quarterly?

Financial Math

PV of annuity due

3) what amount must be deposited now in order to withdraw 2,000 at the beginning of each month for 3 years, if interest is 12% compounded monthly?

4) the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of each month into a savings account, how much will it be worth in 10 years?b) how much would the account be worth if the payments were made at the end of each month, rather than at the beginning?