Mr. Joyful owes $7899 now and $2162 in 7 months. After re-arrangement of payments, he agreed to pay $X in 10 months and $2X in 18 months from now. Determine the value of $X with j12=11.51% per annum.

a.

$3801.33

b.

$3825.87

c.

$14976.45

d.

$4356.53

Denis took a $468774, 29-year bank loan at j12=7.18% p.a. to purchase an investment property. He agreed to make payments consistently at the end of each month. Denis learnt that you are studying financial maths, so he asked you to determine (without making a huge amortization table) the principal portion from the payment in month 289.

a.

$3207.10

b.

$161272.52

c.

$2242.16

d.

$964.95

A company issues $953402 worth of 19-year bonds with semi-annual coupons at j2=9.28% p.a. The bonds are priced to yield j2=4.82% p.a. Determine the issue price per $100 unit.

a.

$114.64

b.

$60.52

c.

$155.10

d.

$385.71

If you earn j2=1.1% per annum on an investment, how long does it take for your money to double?

a.

126.37 years

b.

63.36 years

c.

5.28 years

d.

63.19 years

Mr. X has deposited $3846 at the end of each year into a superannuation fund for the last 16 years. His investments earned j1=6.05% p.a. for the first 11 years and j1=9.05% p.a. for the remaining years. How much money does he have in his account 16 years after his final deposit?

a.

$65258.93

b.

$89032.82

c.

$175935.14