Homework 5 (4.2) - FINANCIAL MATHEMATICS SILABO GERENCIA...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
SILABO – GERENCIA EMPRESARIAL Universidad Iberoamericana UNIBE Due Date : March 31, 2011 Deliver hard copy at the beginning of class and send the electronic file through email. Note: In all the problems set the student must provide a clear mathematical argument for the response. Otherwise a partial credit will be given for correct answers. Book: Mathematics of Money (15 Exercises) Exercises 14.1 Exercises: 2, 6, 8, 10, 12, 15, 16 Exercises 14.2 Exercises: 4, 6, 8, 10, 12, 15, 16, 17 Page 1 of 5 FINANCIAL MATHEMATICS HOMEWORK 5
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Exercises 4.2 4) Cattaruaqua Ginseng Enterprise is considering switching to new packaging equipment that would allow the company to package its products more quickly and with less expensive packaging materials. The new equipment would cost $72,500.00, but the company estimates that it would save $14,575.00 worth of labor and materials costs annually. What is the payback period for this investment? 72,500/14,575 = 4.97 years The payback period will be 5 years. 6) Frank’s credit card has no annual fee, but charges a 23.99% interest rate. His card issuer offers him the opportunity to switch to a new card with a lower 16.99% rate, but that card has a $35 annual fee. How much of an average balance would Frank have to carry in order for it to be
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern