📘 finance
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Roi Calculation
1. **State the problem:** Calculate the return on investment (ROI) for the IS project with initial cost 500,000 and cash flows over 5 years, considering a cost of capital of 7%.
2.
Simple Interest
1. The problem: Calculate the simple interest earned on a principal amount of 1000 over 3 years at an annual interest rate of 5%.
2. Formula for simple interest:
General Annuity
1. The problem is to find the future value of a general annuity where payments are made at the end of each period.
2. Suppose you make a payment of $P$ at the end of each period fo
Monthly Savings
1. Problem statement: Frau E. wants to save by making monthly payments for 25 years at the beginning of each month, to receive a monthly annuity of 300 for 18 years, also paid at t
Payment Terms
1. The problem involves understanding the terms related to payment when a person buys something and pays part of the price upfront.
2. **Down Payment** is the initial amount paid a
Interest Calculation
1. **State the problem:** We are given the principal amount $P = 4200$, the time $t = 9$ months, and the final amount $F = 4263$. We need to find the interest earned.
2. **Recall t
Loan Interest
1. The problem asks for the term used by lending institutions to compute interest owed when a loan is paid off early.
2. This term refers to a method or formula that calculates the
Compound Interest
1. **State the problem:**
We have an initial deposit of RMZ in a savings account with an 8% annual interest rate compounded quarterly.
Compound Interest
1. **State the problem:**
We have an initial investment of RMX made 8 years ago at an 8% annual interest rate compounded semi-annually. The current balance is RM5618.95. We need to
Npv Option 1
1. **State the problem:** Calculate the net present value (NPV) of Option 1 for upgrading the nuclear power station.
2. **Given data:**
Npv Upgrade Options
1. **State the problem:** Calculate the net present value (NPV) for two options of upgrading a nuclear power station with quarterly payments and a given interest rate.
2. **Given d
Compound Interest
1. **State the problem:** Halima took out a loan with compound interest. At the end of 2002, the amount owed was £427.33, and at the end of 2007, it was £592.39. We need to find ho
Compound Interest
1. **State the problem:** Halima took out a loan with compound interest. We know the amount owed at the end of 2002 (£427.33) and at the end of 2007 (£592.39). We want to find how
Compound Interest
1. **State the problem:** Halima took out a loan with compound interest. We know the amount owed at the end of 2002 (£427.33) and at the end of 2007 (£592.39). We need to find how
Mortgage Payment
1. **State the problem:** We have a mortgage of 236100 for 25 years at an annual interest rate of 9.8% compounded monthly. We need to find the monthly payment.
2. **Identify variab
Loan Principal
1. **State the problem:** Toys Or More borrowed money on January 16, 2017, and promised to pay 24200.91 on January 31, 2017. The loan includes interest at 6.6% annual rate. We need
Investment Interest
1. **Problem statement:** New Grains Cooperative invests 45000 for different terms with given interest rates. We need to find the amount after one year for (a) one-year term at 1.9
Investment Interest
1. **State the problem:**
Michael wants to invest 22000 for one year.
Simple Interest Days
1. **State the problem:** We need to find the number of days it takes for $1009.00 to earn $35.95 interest at an annual simple interest rate of 4.25%.
2. **Recall the simple intere
Simple Interest
1. **State the problem:** We need to find the principal deposit $P$ that will earn an interest $I = 77.07$ in $t = 84$ days at an annual interest rate $r = 8.09\%$ using the simple
Annuity Future Value
1. **State the problem:** We need to find the future value of an ordinary annuity with payments of 900 per quarter for 6 years at an 8% annual interest rate compounded quarterly.
2