Questions on Word Problems: Money, Business and Interest answered by real tutors!

Tutors Answer Your Questions about Money Word Problems (FREE)

Question 1185513: The present value of an annuity of R pesos payable annually for 8 years, with the first payment at the end of 10 years, is 187, 481.25. Draw the cash flow diagram and find the value of R if money is worth 5%.
Click here to see answer by ikleyn(52786)

Question 1185118: On May 11, 1993, a note due on January 10, 1994 was discounted at 12.12% simple discount. Find the exact simple interest rate of 10.75% for one year and 3 months? What is the exact discount rate?
Click here to see answer by CPhill(1959)

Question 1209676: max has $600 in his bank account. He withdraws $35 each week, and then deposits $44 weekly. After 6 weeks what is his final balance

Click here to see answer by math_tutor2020(3817)

Question 1184492: Net sales are 20 times as great as net income. If the sales are turn over 3 times during the year, what is the rate of return on assets?
Click here to see answer by CPhill(1959)

Question 1184249: A certain bond pays coupons of Php 5,000 every six months for:
Given:
Semi-annual coupons = 1,000
Face value = 120,000
Time to maturity = 8 years
Market rate = 6%
The bondholder receives 16 payments of Php 5,000 each, and Php 120,000 at t = 8
Find:
Bond price =
Present value of Interest Payment =
Number of periods =
Present Value of Lumpsum =

Click here to see answer by CPhill(1959)

Question 1181849: A consortium of international telecommunication companies contracted for the purchase and
installation of fiber optic cable linking Manila City and Cebu City at total cost of P980 million. This amount
includes freight and installation charges estimated at 12% of the above total contract price. If the cable
shall be depreciated over a period of 15 years with 1% salvage value and money is worth 6% per annum,
what is the depreciation charge during 13 th year, depreciation chargers after 10 years and book value
after 13 years using straight line method.
Click here to see answer by CPhill(1959)

Question 1181668: Determine the return for the buyer of a 7-year, 3% bond of PhP 500,000 face value if on the date it is issued it is purchased from its original owner for PhP 450,000.
Click here to see answer by CPhill(1959)

Question 1181667: Three friends buy a second-hand equipment that costs PhP 120,000. They give a downpayment of PhP 40,000 and agree to settle the balance in 24 monthly payments. If the interest rate is 6% converted monthly, find the payments due at the end of each month.
Click here to see answer by CPhill(1959)

Question 1181665: Determine the return for the buyer of a 7-year, 3% bond of PhP 500,000 face value if on the date it is issued it is purchased from its original owner for PhP 450,000.
Click here to see answer by CPhill(1959)

Question 1179443: A Php 100,000, 10% bond, pays a dividend every quarter for 8 years. The bond is priced at par and is redeemable at 110% of the par value. Find the yield to maturity.
Click here to see answer by CPhill(1959)

Question 1179376: Ten corporate $1,000 bonds quoted at 100 3/4 were purchased. If a $12 brokerage fee was paid per bond, what is the total cost.
Click here to see answer by CPhill(1959)

Question 1179340: What is the paid-up life insurance value of a $50,000 20-year limited-payment life insurance policy that has been owned for 10 years, if the value per $1,000 unit is $428?
Click here to see answer by CPhill(1959)

Question 1179256: How much more interest is earned on a $100 Series EE Savings Bond than $50 deposited in a savings account at 2.5% interest compounded annually for 15 years. [Assume the bond matures in 15 years.]
Click here to see answer by CPhill(1959)

Question 1179081: Nick has been depositing $ 190 in a savings account every three months for the past three years. This account paid 3 % convertible quarterly. Nick has just made the last deposit. Nick is buying a car for $ 14000. He is taking out a car loan. He will use the accumulated value of his savings account as the downpayment on the car. The loan is at 3 % convertible semiannually and has a term of 4 years. Find the size of Nick's monthly car loan payment.
Click here to see answer by CPhill(1959)

Question 1179080: Grandma decides to put 1300 dollars every month into an account for you. She makes 23 monthly deposits, the last coming September 1, 2003 - the day you start college. She wants you to be able to withdraw money from this account at the beginning of each month, with the first withdrawal coming September 1, 2003 and the last coming June 1, 2008, (when you'll graduate). (Note: that makes 58 withdrawals total.) How much will you be able to withdraw each month if the account is earning a nominal interest rate of 9.3 percent convertible monthly?
Click here to see answer by CPhill(1959)

Question 1179079: Betty received $ 500,000 from a life insurance policy to be distributed to her as an annuity certain in 10 equal annual installments with the first payment made immediately. On the day she receives her third payment, she is offered a monthly perpetuity of X in lieu of the future annual payments. The first payment will be made in exactly one month. The effective annual rate of interest is 3 %. Determine the value of X.

Click here to see answer by CPhill(1959)

Question 1178953: Tonya Felburn owes $3,622.41 on five credit cards. She paid $20 on each of the credit card bills. She was charged an average monthly interest rate of 1.35% on the remaining balance. She also charged a total of $115.90 before the next monthly billing. How much does she owe the credit card companies now?
Click here to see answer by CPhill(1959)

Question 1178940: ABC Company sells 5,500 pens per year with a constant demand throughout the year. ABC
purchases the pens at the cost of $300 per unit. Ordering cost for the company is S 100 per
order. Holding cost for the company is S 10 per year. Currently the company is ordering the
products in lots of 200 units. What would be the total holding cost for ABC?
Click here to see answer by CPhill(1959)

Question 1178748: Please help me with this, thank-you. Installment plant mike's sporting goods sell elliptical trainers under under 2 payment plans cash or installment under the installment plan the customer pays $22/month over 3 years with interest charged on the balance at rate of 18%per year compounded monthly.find cash price for an elliptical trainer if it is equivalent to the price paid by a customer using the installment plan answer
Click here to see answer by CPhill(1959)

Question 1178747: financial planning joe plans to deposit $200 at the end of each month into a bank account for a period of 2 years after which he plans to deposit $300 at the end of each month into the same account for another 3 years if the bank pays interest at the rate of 6% per year compounded monthly how much will joe have in his account by the end of 5 years

Click here to see answer by CPhill(1959)

Question 1178719: What is the present worth of a P250 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 5%? With cash flow diagram.
Click here to see answer by CPhill(1959)

Question 1178497: The Trissel family agreed on a price of $223,600 for a home. Their company credit union offers a 5.9% 20 year loan with 15% down, resulting in a monthly payment of $1350.71. Find the monthly payment for the Trissels if they choose a 15 year loan instead of 20 with the same APR and down payment. How much would they save overall?

Click here to see answer by CPhill(1959)

Question 1177373: A farmer wants to sell his small farm to a real estate agent. Determine the total amount the agent can deposit now, at 3% compounded quarterly, so that it is enough to pay $ 750,000 within 3 years.
Click here to see answer by CPhill(1959)

Question 1176778: In 2014 (when the CPI was 236.7) Walmart's annual revenue was $486 billion. By 2015, Walmart's annual report boasted that revenue had grown to $500 billion (and CPI rose to 245.1). The base year of the CPI is 2012.
Answer the following questions based on the above information. Show work for partial credit.
a. What was Walmart's revenue in 2014 adjusted for inflation?
b. What was Walmart's revenue in 2015 adjusted for inflation?
c. Did Walmart's nominal revenue increase or decrease from 2014 to 2015?
d. Did Walmart's real revenue increase or decrease from 2014 to 2015?
e. If you worked for Walmart, would you rewrite the annual report? why or why not
Click here to see answer by CPhill(1959)

Question 1176370: Electrocomp's management realizes that it forgot to include two critical constraints. In particular, management decides that there should be a minimum number of air conditioners produced in order to fulfill a contract. Also, due to an oversupply of fans in the preceding period, a limit should be placed on the total number of fans produced. (a) If Electrocomp decides that at least 20 air conditioners should be produced but no more than 80 fans should be produced, what would be the optimal solution? How much slack is there for each of the four constraints? (b) If Electrocomp decides that at least 30 air conditioners should be produced but no more than 50 fans should be produced, what would be the optimal solution? How much slack is there for each of the four constraints at the optimal solution?
Click here to see answer by CPhill(1959)

Question 1175983: Mary's holiday loading, given that she is paid 17 1/2% on 4 weeks pay and she earns $1890.95 per fortnight?
Click here to see answer by ikleyn(52786)

Question 1175974: 1. Cris Adolfo borrowed Php80,000 at 10.4 % simple interest for 130 days. On day 40, July 3, of the loan, he made a partial payment of Php 12,500. He made another payment of Php 14,500 that pays Php 790.68 of interest.
a. When did Cris made the second partial payment.?
b. How much is being paid to his loan in his 2nd partial payment?
c. How much does he needs to pay on the due date?
Click here to see answer by CPhill(1959)

Question 1175720: Sara obtains a $1,000 loan to purchase a laser printer. Her interest rate is 7% ordinary interest for 100 days. What's her total interest and maturity value?
Click here to see answer by CPhill(1959)

Question 1209810: John invested his money at a nominal interest rate of 12% compounded annually but the inflation rate at that time is equal to 5%. Determine the effective interest rate that John will receive considering the inflation rate.
Click here to see answer by CPhill(1959)

Question 1173889: Aya and Harumi would like to buy a house and their dream house costs $500,000. They have $50,000 saved up for a down payment but would still need to take out a mortgage loan for the remaining $450,000 and they’re not sure whether they could afford the monthly loan payments. The bank has offered them an interest rate of 4.25%, compounded monthly.
Q1 How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years?
Q2 What is the total amount that would be paid to the lender after 25 years of payments?
Q3 What if Aya and Harumi could only afford a monthly payment of $2,000? What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same?
Q4 What is the total amount that would be paid to the lender over 25 years?
Click here to see answer by CPhill(1959)

Question 1173640: Payments of $3,600, due 50 days ago, and $4,100, due in 40 days, are to be replaced by payments of $4,000 due today and the balance due in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earns 8.75%. Use 30 days from now as the focal date.
Second payment=

Click here to see answer by CPhill(1959)

Question 1173636: Kathleen has a $610 loan payment due in eight months. What amount of money should she be able to pay today if the interest on her loan is 3.75% per annum?
Equivalent amount =?

Click here to see answer by CPhill(1959)

Question 1171794: a fruit shake stand sells banana and mango shakes. to be profitable, it must sell at least 10 orders of banana shakes per day. due to limited space, however, no more than 40 orders of banana shakes or 70 orders of mango shakes can be served. even the total number of orders for the day cannot exceed 90. if profit is Php 32 for each banana shake sold and Php 32 for each mango shake, how many of each kind should the vendor sell in order to maximize profit? find the objective functions, constraints and max/min value.
Click here to see answer by ikleyn(52786)

Question 1209843: How long do you need to invest your money in an account earning an annual interest rate of 5,624% compounded daily so that your investment grows from $1380.96 to $10369 over that period of time? give answer in days
Click here to see answer by CPhill(1959)

Question 1171817: You are considering three invest¬ments. The first is a bond that is selling in the market at RM1,200. The bond has a RM 1,000 par value, pays interest at 14 percent, and is scheduled to mature in 12 years. For bonds of this risk class you believe that a 12 percent rate of return should be required. The second investment that you are analyzing is a preferred stock (RM100 par value) that sells for RM80 and pays an annual dividend of RM 12. Your required rate of return for this stock is 14 percent. The last investment is a common stock (RM35 par value) that recently paid a RM3 dividend. The firm’s earnings per share have increased from RM4 to RM8 in 10 years, which also reflects the expected growth in dividends per share for the indefinite future. The stock is selling for RM25, and you think a reasonable required rate of return for the stock is 20 percent.
a. Calculate the value of each security based on your required rate of return.
b. Which investment(s) should you accept? Why?
c. 1. If your required rates of return changed to 14 percent for the bond, 16 percent for the preferred stock, and 18 percent for the common stock, how would your answers change to parts (a) and (b)?
2. Assuming again that your required rate of return for the common stock is 20 percent, but the anticipated growth rate changes to 12 percent, would your answers to parts (a) and (b) be different
d. Explain the relationship between an investor’s required rate of return and the value of a security.

Click here to see answer by CPhill(1959)

Question 1171791: a predator requires 21 units of food A 12 units of food B, and 21 units of food C as its average daily consumption. these requirements are satisfied by feeling on two prey species. one prey of species A, provides 6,2 and 3 units of food of A,B, and C, respectively. to capture and digest a prey of species B provides 3,3 and 5 units of A, B and C, respectively. to capture and digest a prey of species A requires 7 units of energy, on the average. the corresponding energy. How many preys of each should the predator capture to meet its food requirement with minimum expenditure? find the objective function, constraints and max/min value.
Click here to see answer by CPhill(1959)

Question 1171401: Deion bought a tent that was marked down 50% from an original price of $40. If he paid 5% sales tax, what was the total cost of the tent?

Click here to see answer by ikleyn(52786)

Question 1171213: Cricket World Cup (CWC) is considering a project proposal which requires an initial investment of $72,625 and it is expected to have net cash flows of $15,000 per year for 8 years. The firm cash flows are discounted at a rate of 12 percent.
a. What is the project’s Net Present Value (NPV)? (Rounded to 2 decimal places)
b. What is the project’s discounted payback period? (Rounded to 2 decimal places)

Click here to see answer by CPhill(1959)

Question 1209929: The Pireras are planning to go to Europe 4 years from now and have agreed to set aside $180/month for their trip. If they deposit this money at the en each month into a savings account paying interest at the rate of 3%/year compounded monthly, how much money will be in their ‘travel fund at the end of the fourth year? (Round your answer to the nearest cent.)
Click here to see answer by CPhill(1959)

Older solutions: 1..45, 46..90, 91..135, 136..180, 181..225, 226..270, 271..315, 316..360, 361..405, 406..450, 451..495, 496..540, 541..585, 586..630, 631..675, 676..720, 721..765, 766..810, 811..855, 856..900, 901..945, 946..990, 991..1035, 1036..1080, 1081..1125, 1126..1170, 1171..1215, 1216..1260, 1261..1305, 1306..1350, 1351..1395, 1396..1440, 1441..1485, 1486..1530, 1531..1575, 1576..1620, 1621..1665, 1666..1710, 1711..1755, 1756..1800, 1801..1845, 1846..1890, 1891..1935, 1936..1980, 1981..2025, 2026..2070, 2071..2115, 2116..2160, 2161..2205, 2206..2250, 2251..2295, 2296..2340, 2341..2385, 2386..2430, 2431..2475, 2476..2520, 2521..2565, 2566..2610, 2611..2655, 2656..2700, 2701..2745, 2746..2790, 2791..2835, 2836..2880, 2881..2925, 2926..2970, 2971..3015, 3016..3060, 3061..3105, 3106..3150, 3151..3195, 3196..3240, 3241..3285, 3286..3330, 3331..3375, 3376..3420, 3421..3465, 3466..3510, 3511..3555, 3556..3600, 3601..3645, 3646..3690, 3691..3735, 3736..3780, 3781..3825, 3826..3870, 3871..3915, 3916..3960, 3961..4005, 4006..4050, 4051..4095, 4096..4140, 4141..4185, 4186..4230, 4231..4275, 4276..4320, 4321..4365, 4366..4410, 4411..4455, 4456..4500, 4501..4545, 4546..4590, 4591..4635, 4636..4680, 4681..4725, 4726..4770, 4771..4815, 4816..4860, 4861..4905, 4906..4950, 4951..4995, 4996..5040, 5041..5085, 5086..5130, 5131..5175, 5176..5220, 5221..5265, 5266..5310, 5311..5355, 5356..5400, 5401..5445, 5446..5490, 5491..5535, 5536..5580, 5581..5625, 5626..5670, 5671..5715, 5716..5760, 5761..5805, 5806..5850, 5851..5895, 5896..5940, 5941..5985, 5986..6030, 6031..6075, 6076..6120, 6121..6165, 6166..6210, 6211..6255, 6256..6300, 6301..6345, 6346..6390, 6391..6435, 6436..6480, 6481..6525, 6526..6570, 6571..6615, 6616..6660, 6661..6705, 6706..6750, 6751..6795, 6796..6840, 6841..6885, 6886..6930, 6931..6975, 6976..7020, 7021..7065, 7066..7110, 7111..7155, 7156..7200, 7201..7245, 7246..7290, 7291..7335, 7336..7380, 7381..7425, 7426..7470, 7471..7515, 7516..7560, 7561..7605, 7606..7650, 7651..7695, 7696..7740, 7741..7785, 7786..7830, 7831..7875, 7876..7920, 7921..7965, 7966..8010, 8011..8055, 8056..8100, 8101..8145, 8146..8190, 8191..8235, 8236..8280, 8281..8325, 8326..8370, 8371..8415, 8416..8460, 8461..8505, 8506..8550, 8551..8595, 8596..8640, 8641..8685, 8686..8730, 8731..8775, 8776..8820, 8821..8865, 8866..8910, 8911..8955, 8956..9000, 9001..9045, 9046..9090, 9091..9135, 9136..9180, 9181..9225, 9226..9270, 9271..9315, 9316..9360, 9361..9405, 9406..9450, 9451..9495, 9496..9540, 9541..9585, 9586..9630, 9631..9675, 9676..9720, 9721..9765, 9766..9810, 9811..9855, 9856..9900, 9901..9945, 9946..9990, 9991..10035, 10036..10080, 10081..10125, 10126..10170, 10171..10215, 10216..10260, 10261..10305, 10306..10350, 10351..10395, 10396..10440, 10441..10485, 10486..10530, 10531..10575, 10576..10620, 10621..10665, 10666..10710, 10711..10755, 10756..10800, 10801..10845, 10846..10890, 10891..10935, 10936..10980, 10981..11025, 11026..11070, 11071..11115, 11116..11160, 11161..11205, 11206..11250, 11251..11295, 11296..11340, 11341..11385, 11386..11430, 11431..11475, 11476..11520, 11521..11565, 11566..11610, 11611..11655, 11656..11700, 11701..11745, 11746..11790, 11791..11835, 11836..11880, 11881..11925, 11926..11970, 11971..12015, 12016..12060, 12061..12105, 12106..12150, 12151..12195, 12196..12240, 12241..12285, 12286..12330, 12331..12375, 12376..12420, 12421..12465, 12466..12510, 12511..12555, 12556..12600, 12601..12645, 12646..12690, 12691..12735, 12736..12780, 12781..12825, 12826..12870, 12871..12915, 12916..12960, 12961..13005, 13006..13050, 13051..13095, 13096..13140, 13141..13185, 13186..13230, 13231..13275, 13276..13320, 13321..13365, 13366..13410, 13411..13455, 13456..13500, 13501..13545, 13546..13590, 13591..13635, 13636..13680, 13681..13725, 13726..13770, 13771..13815, 13816..13860, 13861..13905, 13906..13950, 13951..13995, 13996..14040, 14041..14085, 14086..14130, 14131..14175, 14176..14220, 14221..14265, 14266..14310, 14311..14355, 14356..14400, 14401..14445, 14446..14490, 14491..14535, 14536..14580, 14581..14625, 14626..14670, 14671..14715, 14716..14760, 14761..14805, 14806..14850, 14851..14895, 14896..14940, 14941..14985, 14986..15030, 15031..15075, 15076..15120, 15121..15165, 15166..15210, 15211..15255, 15256..15300, 15301..15345, 15346..15390, 15391..15435, 15436..15480, 15481..15525, 15526..15570, 15571..15615, 15616..15660, 15661..15705, 15706..15750, 15751..15795, 15796..15840, 15841..15885, 15886..15930, 15931..15975, 15976..16020, 16021..16065, 16066..16110, 16111..16155, 16156..16200, 16201..16245, 16246..16290, 16291..16335, 16336..16380, 16381..16425, 16426..16470, 16471..16515, 16516..16560, 16561..16605, 16606..16650, 16651..16695, 16696..16740, 16741..16785, 16786..16830, 16831..16875, 16876..16920, 16921..16965, 16966..17010, 17011..17055, 17056..17100, 17101..17145, 17146..17190, 17191..17235, 17236..17280, 17281..17325, 17326..17370, 17371..17415, 17416..17460, 17461..17505, 17506..17550, 17551..17595, 17596..17640, 17641..17685, 17686..17730, 17731..17775, 17776..17820, 17821..17865, 17866..17910, 17911..17955, 17956..18000, 18001..18045, 18046..18090, 18091..18135, 18136..18180, 18181..18225, 18226..18270, 18271..18315, 18316..18360, 18361..18405, 18406..18450, 18451..18495, 18496..18540, 18541..18585, 18586..18630