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The Loann Le Milling Company is going to purchase a new piece of testing equipment for $28,000 and a new machine for $53,000. The equipment falls in the three-year property class, and the machine is in the five-year class. What annual depreciation will the company be able to take on the two assets?


Suppose that you establish an IRA (Individual Retirement Account) at age 43 and you will retire after 22 years hence at age 65. You plan to make annual payments of Rs1000 into the IRA at the beginning of each year. If you assume a rate of return of 8.5 percent a year, calculate the future value of your IRA when you will retire at age 65.

if a bond is trading at a premium,what is the relationship between the bond's coupon rate,current yield and yield to maturity


A company uses 100000 units per year which is 30 shillings, carrying costs are 1% per month and ordering cost are 250 per order

I) what is the EOQ

Ii) what is the length of the order cycle

III) what is the cost of having stock annually

iv) what would the EOQ be if the compy make the items themselves on a machine with a potential capacity of 600000 units per year





In its first year, “ABC Co” had the following experience





Sales = 50,000 units Selling price = br. 50





TVC = br. 1,000,000 TFC = br. 250,000





Required:





Develop Revenue, cost & profit functions for the co. in terms of quantity.





Find the Breakeven point in terms of quantity





Convert the cost equation in terms of quantity in to a cost equation in terms of revenue





Find the Breakeven revenue





If profit had been br. 500,000 what would have been the sales volume (revenue) & the quantity of sales





What would have been the profit if sales are br. 2,000,000.

A Bcom graduate bought a small apartment for R151 000.she paid a down payment of R51 000.If the graduate secures a mortgage bond for the balance at 15% per annum,compounded monthly,with a term of 20 years,what are the monthly payments?




Given below are account balances of Eva Merchandising. You are tasked to prepare the cost of goods sold using periodic and perpetual inventory systems and to

compute for gross profit.


  1. Merchandising inventory beginning - 250,000
  2. Purchases on account- 380, 000
  3. Sales on account- 650,000
  4. Sales return -20,000
  5. Ending inventory percount-43,500

A listed company on the ZSE has the stock price six months from expiration of

an option as $95, risk free interest rate is 4% per annum and an exercise price of $90. The volatility is 30% per annum. Calculate the price of the European put option using the Black-Scholes option pricing model. Using the put-call parity relationship, calculate the call price. Sketch the call and put payoff graphs defined in the question. Use R





An American businessman visiting London changed US$500 into English pounds when the rate of exchange was $1.75 to the pound. He spent £257 and changed the rest back into dollars when the rate of exchange was $1.55 to the pound. At each transaction the bank charged a commission of 2%. How many dollars did the man have at the end of these transactions?


A small home business set up with an investment of $ 10,000 for equipment. The business manufactures a product at a cost of br. 0.64 per unit. If the product sales for Br. 1.20 per unit how many units must be sold before the business breaks even?







A retail co. plans to work on a margin of 54% of retail price & to incur other Variable Cost of 4%. If is expected fixed cost of Br. 40,000.







Find the equation relating Total Cost to sales







Find the profit if sales are Br. 80,000







Find the breakeven revenue







If profit is Br. 20,000 what should be the revenue level?







If you have any one item at a price of Br. 20/unit how do you convert the cost equation in terms of revenue in to a cost equation in terms of quantity?

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