BMT-101 Business Mathematics-I Course Teacher: Ms. Mozumdar Arifa Ahmed Problem Sheet – 5 Mathematics of Finance 1. Find the interest rate of $1000 earns $45 interest in 6 months. 2. Find the exact and ordinary interest on $2190 for 75 days at 12% interest. 3. Find the future value if $20,000 is invested at 6% for 3 months. 4. Find the present value of $1000 at 9% due 8 months from now. 5. Find the present value and the effective rate of $1000 due in 4 months at 12% interest
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#6 Your homework assignment for this week's lecture is on Bonds, from Chapters 14, 15, and 16 You are to work on 10 problems. Due date: Saturday, July 12, by 11:59 pm Chapter 14: 10, 11, 12, 14, 16 Chapter 15: 7, 11, 14 Chapter 16: 8 and 12 SOLUTIONS Chapter 14: 10. a. | Zero coupon | 8% coupon | 10% coupon | Current prices | $463.19 | $1,000.00 | $1,134.20 | | | | | b. Price 1 year from now | $500.25 | $1,000.00 | $1,124.94 | Price increase | $ 37.06 | $ 0
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in one year $100 $120 0 Money Time 1 Which option should one take? 4 2 2 Lottery Example: Future Value If you take money now, you can put them in the bank at the current interest rate “r” of 5%, and have the following amount in one year: V0=$100 0 Money Time V1=$105 1 The amount in one year – future value (FV) – is calculated as FV = Principal + r × Principal = $100 + 0.05 × $100 = $105 Which option should we take now? 5 Lottery
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n September 2003, Mason Sexton, a young, inexperienced developer, was making plans to replace a rooming house he had inherited next to the University of Virginia campus in Charlottesville with a new 14-unit, 5-story apartment house. In his attempts to assemble the information, approvals, and resources necessary to go ahead, he runs into many problems associated with the development process. While Sexton is able to carry out most of the conceptual, investigative and planning stages of this development
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percent per year on deposits. So after a year, your account will earn interest of $6: Interest = interest rate × initial investment = .06 × $100 = $6 You start the year with $100 and you earn interest of $6, so the value of your investment will grow to $106 by the end of the year: Value of investment after 1 year = $100 + $6 = $106 Notice that the $100 invested grows by the factor (1 + .06) = 1.06. In general, for any interest rate r, the value of the investment at the end of 1 year is (1 + r)
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standard interest rate quote is one year this interest rate factor is like an exchange rate across time periods as it has units of (value in future period / value today) the interest rate factor is used to compute values in the future Example You are offered $1,000 today and the interest rate for one year is 5%; what is the value of this offer in one year? interest rate factor = 1 + 5% = 1.05 $1,000 today · (1.05 value in 1 year / value today ) = $1,050 in 1 year we call $1,050 the Future Value
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I just know there's more. 0:49 You know it because you feel it. 0:52 You lie awake at night. You talk about your dreams with your partner 0:56 and your friends, but more often than not, 0:58 you continue to do those same behaviors that keep you from making the change. 1:04 You ask yourself, "How can I make it happen?" 1:09 Research shows, the odds against you making a change in your life -- 1:15 -- 9 to 1. 1:17 9 to 1, even if you're facing a life-threatening illness. 1:22 But let me show
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secured by property owned by the firm D. unsecured 4. A mortgage bond is _______. A. secured by other securities held by the firm B. secured by equipment owned by the firm C. secured by property owned by the firm D. unsecured 5. A debenture is _________. A. secured by other securities held by the firm B. secured by equipment owned by the firm C. secured by property owned by the firm D. unsecured 6. Bonds issued in the U.S. are __________ and most bonds issued overseas
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be all donated items from churches and from different companies. This includes clothes, food, toys, pampers, toiletries, school supplies, household items (pots, dishes etc), and linens. These supplies will be sent over ahead of time eliminating us having to bring it ourselves. I will break down the total amount of expenses needed to cover this trip to make sure we are on budget and covered in every aspect. A flight to Viedma Argentina costs $3,185.60 per person round trip from May 16th until June
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Institutional investor intentions to 2016 An Invest AD report written by the Economist Intelligence Unit Into Africa Institutional investor intentions to 2016 Contents Foreword 2 Preface 3 About this research 4 Key findings 5 I. Introduction: a North-South role reversal 6 II. A hopeful decade: Africa’s changing image 8 III. Barriers to investment 11 IV. The new investment case for Africa 15 V. Investor perceptions versus market reality in key markets
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