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Mathematics of Finance BMT-101, Business Mathematics-I Course Instructor - Mozumdar Arifa Ahmed

This document contains a list of 15 mathematics of finance problems related to calculating interest rates, future and present values, compound interest, and annuities. The problems cover topics such as finding interest rates, compounding interest on investments over different time periods, determining the future or present value of a lump sum invested at a given interest rate, comparing investments with different compounding schedules, and calculating the value of annuities. The document indicates that it is from a business mathematics course and lists the instructor's name.

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Nahiyan Islam Apu
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51 views

Mathematics of Finance BMT-101, Business Mathematics-I Course Instructor - Mozumdar Arifa Ahmed

This document contains a list of 15 mathematics of finance problems related to calculating interest rates, future and present values, compound interest, and annuities. The problems cover topics such as finding interest rates, compounding interest on investments over different time periods, determining the future or present value of a lump sum invested at a given interest rate, comparing investments with different compounding schedules, and calculating the value of annuities. The document indicates that it is from a business mathematics course and lists the instructor's name.

Uploaded by

Nahiyan Islam Apu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Mathematics of Finance

BMT-101, Business Mathematics-I


Course Instructor Mozumdar Arifa Ahmed

1. Find the interest rate of $1000 earns $45 interest in 6 months.

2. Find the exact and ordinary interest on $2190 for 75 days at 12% interest.

3. Find the future value if $20,000 is invested at 6% for 3 months.

4. Find the present value of $1000 at 9% due 8 months from now.

5. Find the present value and the effective rate of $1000 due in 4 months at 12%
interest.

6. If $500 is invested at 6% compounded annually, what will be the future value 30


years later?

7. At 8% compounded annually, how many years will it take for $2000 to grow to
$3000?

8. At what interest rate compounded annually will a sum of money would be double/
triple in 10 years?

9. What is the present value of $2500 payable 4 years from now at 8% compounded
quarterly/ semiannually?

10. If $100 is deposited in an account each month for 10 years and the account earns
7% compounded monthly; how much will be in the account after the last deposit
is made?

11. If $500 were invested for 8 years at interest rate 6% compounded quarterly, then
what will be the compound interest?

12. An investor has an opportunity to purchase two different notes: Note A pays 15%
compounded monthly and Note B pays 15.2% compounded semiannually. Which
is the better investment?

13. What is the present value of an annuity that pays $200 per month for 5 years if
money is worth 6% compounded monthly?

14. What is the value of an annuity at the end of 20 years if $2000 is deposited each
year into an account earning 8.5 % compounded annually? How much of this
value is interest?

15. How much should you invest now at 10% compounded quarterly to have $8,000
toward the purchase of a car in 5 years?

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