SOLUTION: Mock Questions for Class Test 1 An investment account offers an interest rate of 6% per annum compounded half yearly. Assuming a single deposit of money is placed in this invest

Question 359252: Mock Questions for Class Test 1
An investment account offers an interest rate of 6% per annum compounded half yearly. Assuming a single deposit of money is placed in this investment account:
i) How much money must be invested now in order for the account to contain �45000 after 5 years?
ii) What would be the final amount of investment if �29000 is invested for 7 years?
iii) How long would it take for �29000 to amount to �68000, assuming that �1000 is withdrawn at the end of first year and thereafter no further withdrawals are made?
(�33484, �43865, 15 years)
A firm annual fixed cost of production is �7200. The annual variable costs of the production are �60 per unit of output plus �2 per square unit of output. The product is sold at a constant price of �320 per unit. Calculate the breakeven levels of production.
(40 or 90)
A man wishes to repay a debt of �4,000 by paying a fixed sum of �80 per month to reduce the debt, together with a payment of 1% interest for that month indebtedness. Make out a schedule of repayment and Find the total amount of interest paid until the debt is completely discharged.
(�1020)
In a large group of invoices, 30% had a value greater than �50. A random sample of 3 invoices was taken determine the probability that:
(i) All of the three invoices had an invoice value greater �50.
(ii) At least 2 had an invoice value greater than �50.
(iii) None of the three invoices had an invoice value greater than �50.
(0.027, 0.216, 0.343)

Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
45000=x(1+0.06/2)^5*2
45000=1.3439x
x=33485.00
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