Mathematics of Finance

S=P(1+i)^mt

What does m stand for?

• Number of times the interest is compounded

• Number of times the interest is compounded during the month.

• Interest

• Nominal rate

Below are the formulas for Gross Profit, EXCEPT

• GP = SP - C

• GP = C + OE

• GP = OE + NP

Gross profit also known as

(a)  

If markup is less than operating expenses, (a)   is incurred.

The cost of the shirt was RM100. Ali planned to sell the shirt for a gross profit of 32% based on the selling price. What is the sale price of the shirt?

• RM147.06

• RM132

• RM100.32

• RM175.00

A notebook is sold for RM1.50. If the price is mark down by 20%, what is the new selling price of the notebook?

• RM0.30

• RM4.80

• RM1.20

• RM1.80

Nana took a government loan of RM 90 000 to buy her dream car. The loan needs to be settled in 15 years with an interest rate 3% compounded every month.Given the monthly payment is RM621.52.

If after 10 years, Nana decides to pay off the loan, calculate the amount she has to pay.

Which formula you need to use?

• Annuity ( Future Amount , S)

• Annuity ( Present Value,A)

• Compound Amount

• Simple Amount

It refers to the amount of money borrowed.

• Interest

• Term

• Rate

• Principal

If you are calculating the simple interest and you are given the time in months. How can you find the time in years?

• add 12 times the months

• change the months to a decimal

• divide the months by 12

• multiply the months with 12

What do you call the amount earned or paid with the use of money?

(a)