Mathematicsfor
economicsandbusinessCh3reviewsandexam
ReviewsMathMethodScalefactor,geometricseriestheEconomicsquestion1)adjustvaluedataforinflation2)findthefuturevalueundercompound-interest3)findtheAPR4)findthetotalinvestmentofaregularsaving5)findtherepayinstalmentsforaloan6)appraisetheinvestmentbyNPVandIRR7)findthepresentvalueofgovernmentsecurity
Ch3Exam
Ch3Exam
Ch3Exam
4.Apersonsaves$10000inabankaccountatthebeginningofeachyear.Thebankoffersareturnof12%compoundedannually.(a)Determinethetotalamountsavedafter10years.(b)Afterhowmanyyearsdoestheamountsavedfirstexceed$100000?5.Determinethemonthlyrepaymentsneededtorepaya$200000loanwhichispaidbackover30yearswhentheinterestrateis5%compoundedannuallyCh3Exam
.Ch3Exam6.A10-yearbondisoriginallyofferedbythegovernmentat$10000withanannualreturnof10%.Assumingthatthebondcurrentlyhas4yearsleftbeforeredemptionandthattheprevailinginterestrateis5%compoundedannually,calculateitspresentvalue.