MATHEMATICS OF FINANCES

Semi-Annually means how many times a year?

• 4 
• 2
• 1
• 6

Tags

CCSS.3.MD.A.1

Principal: RM5000

Interest Rate: 3.75%

Time: 25 years

Compounded Monthly

State the future account balance.

• RM12712.31

• RM12,749.30

• RM12,657.59

• RM12550.84

Given an investment of RM1,500:

Which investment would have a larger balance after 5 years?

Option 1 - 4% compounded monthly

Option 2 - 3.9% compounded daily.

• Option 1

• Option 2

Shawn is buying a new Jet Ski for RM12,500. He is considering 2 credit options. Option A offers a 6 year loan with 8.5% interest compounded quarterly, while Option B offers a 5 year loan with10% interest compounded annually.Which option is better and how much will he save?

• A) A; RM495.21

• B) A; RM573.83

• C) B; RM495.21

• D) B; RM573.83

You want to save RM5,000 for future family vacation. If the bank pays 4.3% compounded monthly for 3 years, then how much will you need to invest to reach your vacation goal?

• RM4300

• RM5,000

• RM3,250

• RM4,395.88

Sarah borrowed RM18,000 for 4 years at an annual simple interest rate of 7%. How much interest will she pay at the end of the 4 years?

• RM5040

• RM23040

• RM504000

• RM18000

The definition of annuity ?

• A series of equal amount of payment /deposits made at equal intervals time

• A series of equal amount of discount made at equal intervals time

• A series of equal amount of annuity made at equal intervals time

• A series of marvel movie !

Tags

CCSS.HSA.SSE.B.4

 $S\ =\ R\ \frac{\left(1\ +\ i\ \right)^n-1}{i}$  what is the meaning of  $R$  

• Recycle

• Interest Period

• Periodic Payments

• Interest Rate 

Tags

CCSS.HSA.SSE.B.4

Find the nominal rate compounded semi-annually equivalent to 5% effective annual rate.

• 3.94%

• 4.94%

• 5.94%

• 4.9%

A borrower sign a note for discounted loan and agrees to pay the lender RM3000 in 90 days at 8% discount rate . how much the borrower receive?

• RM 2100

• RM 2840

• RM 2940

• RM1294