Hello, This is my homework from (Mathematics of Finance Course)
In this question i only need solutions for Number 7 and 9.
In this question i need solutions for for problems number 2 and 8
This question only number 11
This question only number 8
This question solve all of it with A,B
The last question is number 13. Thank you very much.
7. On April 7, 2002, a debt of $4000 was incurred at rate ja = 10%. What amount will be required to settle the debt on September 19, 2007? 8. A noninterest-bearing note for $850 is due December 8, 2009. On August 7, 2006, the holder of the note has it discounted by a lender who charges ja = 91%. What are the proceeds? 9. A note for $1200 dated August 24, 2005, is due with interest at ji: -88% in 2 years. On June 18, 2006, the holder of the note has it dis- counted by a lender who charges 9.5% com- pounded quarterly. Calculate the proceeds and the compound discount. Part A In problems 1 to 4 calculate the nominal rate of interest. No. Principal Amount Time Conversion 1. $2000 $3000.00 3 years quarterly 9 months 2. $ 100 $ 150.00 4 years monthly 7 months 3. S 200 $ 600.00 15 years annually $1000 $1581.72 3 years semi-annually 6 months In problems 5 to 8 determine the time. Interest Rate No. Principal Amount 5. $2000 $2800 6. S 100 $ 130 7. S 500 $ 800 8. $1800 $2200 10% 9% 6% 8% Conversion quarterly semi-annually monthly quarterly 11. From 2002 to 2007, the earnings per share of common stock of a company increased from $4.71 to $9.38. What was the compounded annual rate of increase? 8. A consumer buys goods worth $1500. She pays $300 down and will pay $500 at the end of 6 months. If the store charges ji = 18% on the unpaid balance, what final payment will be necessary at the end of one year? 10. On September 1, 2005, Paol borrowed $3000, agreeing to pay interest at 12% compounded quarterly. He paid $900 on March 1, 2006, and $1200 on December 1, 2006. a) What equal payments on June 1, 2007, and December 1, 2007, will be needed to settle the debt? b) If Paul paid $900 on March 1, 2006, S1200 on December 1, 2006, and $900 on March 1, 2007, what would be his outstanding balance on September 1, 2007? 13. A man stipulates in his will that $50 000 from his estate is to be placed in a fund from which his three children are to each receive an equal amount when they reach age 21. When the man dies, the children are ages 19, 15, and 13. If this fund earns interest at j2 = 6%, how much does each receive? Iman of cari = 7.2%. Ms. Fil
