Finance Coursework





Finance Coursework

Question 3

(a)

Quarterly Principal Amount= $600

First Payment = Payment made at 13%

Interest= 16% compounded annually

Cash flow= 395.79

(b)

Payments = $30 per month

N= 40 months

Interest= 20%

Cash Flow= $16.38

(C)

60 bi annual payments = 30 Years

Payments = $500

Interest = 15% semiannual interest

Cash Flow = 530.52

(d)

Payment = $240

r = 24%

g = 12%

Present Value: $ -2,000.00

Question 4

Offer 1:

Current Salary= $3000 per month

Salary Increase = 0.5% per month

Retirement Age= 65

Salary at Retirement = 7920

Offer 2:

Current Salary= $4,000 per month

Salary Increase= 5% annually

Salary at Retirement = 8800

Question 5

(a)

A bond is a negotiable debt instrument for a loan by the government, a company or an institution. ...