Question
You have $100,000 now and will receive $130,000 in exactly one years time. If you spend $80,000 today and market interest rates are 10% p.a.
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You have $100,000 now and will receive $130,000 in exactly one years time. If you spend $80,000 today and market interest rates are 10% p.a. compounded semi-annually, how much will you have in one year?
a) $130,000 b) $152,050 c) $150,000 d) $240,000 e) $240,250
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Mr Simon de Money wishes to purchase a new Mercedes Benz C250 CDI. The car costs $73,200. Mr de Money has arranged a loan that only covers part of the purchase price. He intends to finance the rest of the purchase with money from his savings. The loan requires payments of $1,400 per month for 5 years. The interest rate on the loan is 12% p.a. compounded monthly. How much of his savings must Mr de Money use?
a) $13,649.87 b) $9,377.09 c) $12,639.76 d) $14,899.45 e) $10,262.95
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