General Maths Financial Maths

Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents:

b. What is the total balance of Jessie Robinson 's revolving account? (0.5 points) N/A

1. The total cost of interest is equal to the total of all monthly payments:

21. Earl Miller plans to buy a boat for $19,500 with an interest charge of $2,500. Earl figures he can afford a monthly payment of $650. If Earl has to pay 36 equal monthly payments, by how much can he afford the boat per month?

California Surf Clothing Company issues 1,300 shares of $7 par value common stock at $22 per share. Later in the year, the company decides to repurchase 130 shares at a cost of $35 per share.

ABC Company signed a 5-year note payable for $80,000 at 9% annual interest. What is the interest expense for December 31, 2009 if the note was

Interest earned now can be found from getting the difference between the principal and amount.

Interest is stated in terms of a percentage rate to be applied to the face value of the loan.

Purchases are paid 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $10,000. The ending cash balance on September 30 would be:

Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate of

1. Barker Corp. has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Barker's required rate of return?

Compounding monthly means that there are twelve interest payments per year. So, n = 12(5) = 60 and i = 0.08/12 = [pic]

Natalie’s grandmother has decided to charge interest of 6% on the note payable extended on November 16. The loan plus interest is to be repaid in 24 months. (Assume that half a month of interest accrued during November.)

(5 points) In a world with no frictions (i.e., taxes, etc.), having debt is always better because it increases the value of the firm/projet.

     Interest is the fee paid for borrowing money. Most individuals or business owners pay simple interest on a short-term loan, which is usually a loan of up to 1 year. The amount of interest charged by a bank depends on three factors: