Tutors Answer Your Questions about Finance (FREE)
Question 1201035: To rent a storage unit, a customer must pay a fixed deposit of $150 plus $52.50 in rent each month.
a) Write a model for the cost C ( in $) to rent the unit for t months
b) If $1200 is budgeted for storage, for how many months can the unit be rented
Click here to see answer by josgarithmetic(39617)  |
Question 1200963: Asset X generates a perpetual stream of cash flows of $100,000 every 3 months. The relevant interest rate is 12%, compounded quarterly. How much would you pay to buy Asset X today if the first payment occurs right away?
Click here to see answer by ikleyn(52781)  |
Question 1200989: Please help solving bi,ii
Carter expects to live for 30 years more after his retirement. He would like to withdraw $120,000 every year from his investment account (Account A) to pay for his living expenses. Carter’s investment account (Account A) pays 5% interest per year.
How much money (a lump-sum) will Carter required to deposit in Account A at the beginning of his retirement (at age 60) to pay for his living expenses if
(i) Account A start to pay interest one year after his retirement? (5 marks) $1844694.12
(ii) Account A start to pay interest on the day of his retirement? (5 marks) $1936928.83
Continued with part (aii). Suppose Carter has just had his 35th birthday today and decided to begin his retirement (exactly) 25 years from now, at his age of 60. To ensure having sufficient funds to meet his goal, Carter plans to start depositing a fixed amount at the end of every month to a retirement savings account (Account B) that pays an interest of 12%, compounded monthly. The first deposit will be made today (on his 35th birthday) and the last on his 58th birthday.
(i) Compute the size of the monthly deposit into Account B that will allow Carter to meet the financial goal of his retirement. (8 marks)
(ii) If Carter is going to make one single (lump-sum) deposit into Account B on his 40th birthday instead, how much will that be for him to achieve the goal? (2 marks)
Click here to see answer by Theo(13342)  |
Question 1201076: Formulate a system of equations for the situation below and solve.
Michael Perez deposited a total of $2000 with two savings institutions. Bank A pays interest at the rate of 5%/year, whereas Bank B pays interest at the rate of 7%/year. If Michael earned a total of $108 in interest during a single year, how much did he deposit in each institution?
Bank A $
Bank B $
Click here to see answer by josgarithmetic(39617) |
Question 1201076: Formulate a system of equations for the situation below and solve.
Michael Perez deposited a total of $2000 with two savings institutions. Bank A pays interest at the rate of 5%/year, whereas Bank B pays interest at the rate of 7%/year. If Michael earned a total of $108 in interest during a single year, how much did he deposit in each institution?
Bank A $
Bank B $
Click here to see answer by greenestamps(13200)  |
Question 1201076: Formulate a system of equations for the situation below and solve.
Michael Perez deposited a total of $2000 with two savings institutions. Bank A pays interest at the rate of 5%/year, whereas Bank B pays interest at the rate of 7%/year. If Michael earned a total of $108 in interest during a single year, how much did he deposit in each institution?
Bank A $
Bank B $
Click here to see answer by ikleyn(52781) |
Question 1201084: Suppose you are have purchased a house and need a loan for $255,000. You decide to do a 30
year mortgage loan at 4% with monthly payments.
a) Create an Amortization table on Excel with the following headers:
Months Payment Applied to Interest Applied to Loan Balance
b) What is the total amount in interest you pay if you pay off the loan as scheduled?
c) What interest do you pay in the first year (first 12 months)?
d) What interest do you pay in the last year (last 12 months)?
e) If you pay an extra $125 per payment from the beginning of the loan, when will you have it
paid off? How much will you save on total interest if you do this?
(20 points)
2) Use Excel or otherwise to solve this percentage problem. You sell agricultural commodities and
you are interested in the price of corn in the past four weeks. The current price of corn is
$318.(per 100 bushels) This is an increase of 3% from last week. Last weeks price was a 1.5%
decrease form the price two weeks ago. The price two weeks ago was 2% increase from the
price three weeks ago and the price three weeks ago was a 1.25% decrease form the price four
weeks ago. What was the price four weeks ago?
(10 points)
Click here to see answer by Theo(13342) |
Question 1201146: When Anders makes scones he uses sugar butter and flour in the ratio 1:2 8.
He has 100 gram of sugar and 300 gram of butter and 400 gram of flour in the kitchen cupboard.
Anders makes as many scones as he can with these ingredients.
How much of each ingredient does he use?
Click here to see answer by Theo(13342) |
Question 1201104: Starting in the year 2012, the number of speeding tickets issued each year in Middletown is predicted to grow according to an exponential growth model. During the year 2012, Middletown issued 210 speeding tickets (P0=210). Every year thereafter, the number of speeding tickets issued is predicted to grow by 10%.
If Pn denotes the predicted number of speeding tickets during the year
2012 + n, then
Write the recursive formula for Pn
Pn= ___ * Pn-1
Write the explict formula for Pn
Pn=
If this trend continues, how many speeding tickets are predicted to be issued in 2029?
____ tickets
Click here to see answer by josgarithmetic(39617) |
Question 1201246: Kane Manufacturing has a division that produces two models of fireplace grates, x units of model A and y units of model B. To produce each model A grate requires 3 lb of cast iron and 6 min of labor. To produce each model B grate requires 4 lb of cast iron and 3 min of labor. The profit for each model A grate is $2, and the profit for each model B grate is $1.50. 1000 lb of cast iron and 20 labor-hours are available for the production of grates each day. Because of an excess inventory of model B grates, management has decided to limit the production of model B grates to no more than 200 grates per day.
(a) If the contribution to the profit of a model A grate is changed to $1.50/grate, what will be the optimal profit?
The optimal profit is P = $ ? at (x, y) =
(b) If the contribution to the profit of a model A grate is changed to $2.25/grate, what will be the optimal profit?
The optimal profit is P = $ ? at (x, y) =
.
Click here to see answer by Glaviolette(140)  |
Question 1201322: Ashley has earmarked at most $950,000 for investment in three mutual funds: a money market fund, an international equity fund, and a growth-and-income fund. The money market fund has a rate of return of 6%/year, the international equity fund has a rate of return of 10%/year, and the growth-and-income fund has a rate of return of 15%/year. Ashley has stipulated that no more than 25% of her total portfolio should be in the growth-and-income fund and that no more than 50% of her total portfolio should be in the international equity fund. To maximize the return on her investment, how much should Ashley invest in each type of fund?
money market fund $
international equity fund $
growth-and-income fund $
What is the maximum return?
Click here to see answer by ikleyn(52781) |
Question 1201332: The Stereo Shop sold a radio regularly priced $125.00 for $75.00. The radio was originally purchased for $120.00 less 33%, 15%. The store's overhead is 12% of the regular selling price.
(a) What was the rate of markdown at which the radio was sold?
(b) What was the operating profit or loss?
(e) What rate of markup based on cost was realized?
(a) What was the rate of markup based on the sale price?
Click here to see answer by ikleyn(52781) |
Question 1201321: A division of the Winston Furniture Company manufactures dining tables and chairs. Each table requires 40 board feet of wood and 6 labor-hours. Each chair requires 16 board feet of wood and 4 labor-hours. The profit for each table is $45, and the profit for each chair is $25. In a certain week, the company has 3200 board feet of wood available and 520 labor-hours available. How many tables and chairs should Winston manufacture to maximize its profit?
tables: ?
chairs: ?
What is the maximum profit?
Click here to see answer by Theo(13342) |
Question 1201320: An oil company operates two refineries in a certain city. Refinery I has an output of 200, 100, and 100 barrels of low-, medium-, and high-grade oil per day, respectively. Refinery II has an output of 100, 200, and 600 barrels of low-, medium-, and high-grade oil per day, respectively. The company wishes to produce at least 1000, 1400, and 3000 barrels of low-, medium-, and high-grade oil to fill an order. If it costs $600/day to operate Refinery I and $900/day to operate Refinery II, determine how many days each refinery should be operated to meet the production requirements at minimum cost to the company.
Refinery I ? days
Refinery II ? days
What is the minimum cost?
Click here to see answer by Theo(13342) |
Question 1201319: A farmer uses two types of fertilizers. A 50-lb bag of Fertilizer A contains 8 lb of nitrogen, 2 lb of phosphorus, and 4 lb of potassium. A 50-lb bag of Fertilizer B contains 5 lb each of nitrogen, phosphorus, and potassium. The minimum requirements for a field are 440 lb of nitrogen, 260 lb of phosphorus, and 360 lb of potassium. If a 50-lb bag of Fertilizer A costs $40 and a 50-lb bag of Fertilizer B costs $30, find the amount of each type of fertilizer the farmer should use to minimize his cost while still meeting the minimum requirements.
Fertilizer A ? bags
Fertilizer B ? bags
What is the minimum cost?
Click here to see answer by Theo(13342) |
Question 1201354: n 5-card poker, played with a standard 52-card deck, 52C5, or 2,598,960, different hands are possible. The probability of being dealt various hands is the number of different ways they can occur divided by 2,598,960. Shown to the right is the number of ways a particular type of hand can occur and its associated probability. Find the probability of not being dealt this type of hand.
Click here to see answer by Alan3354(69443)  |
Question 1201354: n 5-card poker, played with a standard 52-card deck, 52C5, or 2,598,960, different hands are possible. The probability of being dealt various hands is the number of different ways they can occur divided by 2,598,960. Shown to the right is the number of ways a particular type of hand can occur and its associated probability. Find the probability of not being dealt this type of hand.
Click here to see answer by ikleyn(52781) |
Question 1201271: A company wishes to produce two types of souvenirs: Type A and Type B. Each Type A souvenir will result in a profit of $1, and each Type B souvenir will result in a profit of $1.20. To manufacture a Type A souvenir requires 2 minutes on Machine I and 1 minute on Machine II. A Type B souvenir requires 1 minute on Machine I and 3 minutes on Machine II. There are 3 hours available on Machine I and 5 hours available on Machine II.
(a) The optimal solution holds if the contribution to the profit of a Type B souvenir lies between $ ?
and $ ?
(b) Find the contribution to the profit of a Type A souvenir (with the contribution to the profit of a Type B souvenir held at $1.20), given that the optimal profit of the company will be $160.80.
$
(c) What will be the optimal profit of the company if the contribution to the profit of a Type B souvenir is $1.50 (with the contribution to the profit of a Type A souvenir held at $1.00)
Click here to see answer by Edwin McCravy(20055)  |
Question 1200913: What monthly payment is required to amortize a loan of $50,000 over 10 years if interest at the rate of 6%/year is charged on the unpaid balance and interest calculations are made at the end of each month? (Round your answer to the nearest cent.)
Click here to see answer by mananth(16946)  |
Question 1200913: What monthly payment is required to amortize a loan of $50,000 over 10 years if interest at the rate of 6%/year is charged on the unpaid balance and interest calculations are made at the end of each month? (Round your answer to the nearest cent.)
Click here to see answer by MathTherapy(10552)  |
Question 1200913: What monthly payment is required to amortize a loan of $50,000 over 10 years if interest at the rate of 6%/year is charged on the unpaid balance and interest calculations are made at the end of each month? (Round your answer to the nearest cent.)
Click here to see answer by math_tutor2020(3817) |
Question 1200913: What monthly payment is required to amortize a loan of $50,000 over 10 years if interest at the rate of 6%/year is charged on the unpaid balance and interest calculations are made at the end of each month? (Round your answer to the nearest cent.)
Click here to see answer by ikleyn(52781) |
Question 1201429: A farmer uses two types of fertilizers. A 50-lb bag of Fertilizer A contains 8 lb of nitrogen, 2 lb of phosphorus, and 4 lb of potassium. A 50-lb bag of Fertilizer B contains 5 lb each of nitrogen, phosphorus, and potassium. The minimum requirements for a field are 440 lb of nitrogen, 260 lb of phosphorus, and 360 lb of potassium. If a 50-lb bag of Fertilizer A costs $50 and a 50-lb bag of Fertilizer B costs $40, find the amount of each type of fertilizer the farmer should use to minimize his cost while still meeting the minimum requirements.
Fertilizer A ? bags
Fertilizer B ? bags
What is the minimum cost?
Click here to see answer by ikleyn(52781) |
Question 1201428: An oil company operates two refineries in a certain city. Refinery I has an output of 200, 100, and 100 barrels of low-, medium-, and high-grade oil per day, respectively. Refinery II has an output of 100, 200, and 600 barrels of low-, medium-, and high-grade oil per day, respectively. The company wishes to produce at least 1000, 1400, and 3000 barrels of low-, medium-, and high-grade oil to fill an order. If it costs $600/day to operate Refinery I and $900/day to operate Refinery II, determine how many days each refinery should be operated to meet the production requirements at minimum cost to the company.
Refinery I ? days
Refinery II ? days
What is the minimum cost?
Click here to see answer by ikleyn(52781) |
Question 1201432: As part of a campaign to promote its annual clearance sale, Excelsior Company decided to buy television advertising time on Station KAOS. Excelsior's television advertising budget is $120,000. Morning time costs $3000/min, afternoon time costs $1000/min, and evening (prime) time costs $12,000/min. Because of previous commitments, KAOS cannot offer Excelsior more than 6 min of prime time or more than a total of 25 min of advertising time over the 2 weeks in which the commercials are to be run. KAOS estimates that morning commercials are seen by 200,000 people, afternoon commercials are seen by 100,000 people, and evening commercials are seen by 600,000 people. How much morning, afternoon, and evening advertising time should Excelsior buy to maximize exposure of its commercials?
morning ? min
afternoon ? min
evening ? min
Click here to see answer by Theo(13342) |
Question 1201528: A cyclist rides over a hill , a total journey of 9km. His average speed uphill is 8km/hr and his average speed downhill is 20km/hr . If the journey takes 45minutes , find the distance he rode uphill.( the answer is 4km)
Now , this is how I worked it out :
I took 8 km/hr and 9km and divided them (since time=distance/speed)
so 9/8hrs he took uphill. and then I did 8km/hr multiplied by 9/8hrs which is 9.
so distance uphill which is 9cm . but that is the total journey given . How do you work this out please?
Click here to see answer by ikleyn(52781) |
Question 1201517: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.
You expect to retire in 15 years.
If your account earns 6% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
Click here to see answer by Theo(13342) |
Question 1201536: Suppose that an annuity will provide for 20 annual payments of 1240 dollars, with the first payment coming 11 years from now. If the nominal rate of interest is 10 percent convertible monthly, what is the present value of the annuity?
Click here to see answer by Theo(13342) |
Question 1201535: Most scholarships are established by making a one time deposit into an account. The scholarship money is then taken from the earned
interest on the account at the end of each investment year. How much money should you deposit into an account earning an annual
interest rate of 3.833% compounded quarterly to establish an annual scholarship worth $1,500.00?
Click here to see answer by Theo(13342) |
Question 1201600: At graduation, you have a student loan of $19,000. The loan has a fixed annual interest rate of 3.4%, compounded monthly, for 10 years. What will your monthly payments be? (Enter numeric answers to 2 decimal places.)
Click here to see answer by ikleyn(52781) |
Question 1201604: A shopkeeper bought x chairs for a total cost of $650. He sold them at $4 each more than they had cost him . Six chairs were damaged and could not be sold . If he made a profit of $98 on the whole transaction , form and solve an equation in x .
I did :
x(x-6)-650=98
x^2-6x-748=0 (can't be factored)
The answer on my book is 50 .
So, how is this solved?
Click here to see answer by ikleyn(52781) |
Question 1201607: You can afford a $900 per month mortgage payment. You've found a 30 year loan at 6% interest.
a) How big of a loan can you afford?
$
b) How much total money will you pay the loan company?
$
c) How much of that money is interest?
Click here to see answer by Theo(13342) |
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