Question 1 [5 points]
The question was:
Antique Accents has bought a product from their supplier for $2,295 with discounts of 20% and
30%. For full marks your answer(s) should be rounded to the nearest cent.
Your solution was:
a) What is the cost of the p
Present
Present
Value
Value
Slide: 1
Topics
Section 9.3
Section 9.1: Introduction
Section 9.2: Future Value
Section 9.3: Present Value
Section 9.4: Equivalent Payments
Section 9.5: Periodic Interest Rate and Nominal Interest Rate
Section 9.6: Number of Co
Slide:1
Number of
Number of
Compounding
Compounding
Periods and
Periods and
Time Period
Time Period
Topics
Section 9.6
Section 9.1: Introduction
Section 9.2: Future Value
Section 9.3: Present Value
Section 9.4: Equivalent Payments
Section 9.5: Periodic In
Introductio
Introductio
n
n
Slide: 1
Topics
Section 9.1
Section 9.1: Introduction
Section 9.2: Future Value
Section 9.3: Present Value
Section 9.4: Equivalent Payments
Section 9.5: Periodic Interest Rate and Nominal Interest Rate
Section 9.6: Number of Co
Question 1 [5 points]
The question was:
Rebecka is considering two offers on a property that she is willing to sell. Mr. Zhu's offer is
$85,000 payable immediately. Ms. Clark's offer is for $12,000 down and $93,000 payable in 3
years.
Your solution was:
a
QNM106: QUIZ 2 PRACTICE QUESTIONS
1. How much should be paid for an annuity that would provide $5000 at the end of every year for
the first 7 years and $8000 at the end of every year for the next 4 years, if the interest rate is 6%
compounded semi-annuall
QNM106: QUIZ 1 PRACTICE QUESTIONS
1. What amount decreased by 15% is $255? ($300)
2. Company A had a profit of $120,000 at the end of the first year of business. At the end of the
second year of its business, Company A reported a profit that was reduced b
NOTATION
L = List price
d = Single discount rate
d L = Amount of trade discount
de = Single equivalent discount
rate to a series of discount rates
N = Net price
C = Cost
M = Markup
S = Selling price
(or regular selling price)
D = Markdown
BE = Break-even
QNM106: MATHEMATICS FOR BUSINESS AND FINANCE FALL 2016
1
Text Book
Mathematics of Business and Finance, 2nd Edition Daisley, Kugathasan, Huysmans .published by
Vretta Inc.
The new textbook which includes the Access Code can be purchased from the bookstore
Question 1 [5 points]
The question was:
Sanjeev placed $10,000 in a 90-day term deposit earning 6.5% per year. How much will the bank
pay Sanjeev on the maturity date? For full marks your answer(s) should be rounded to the nearest
cent.
Your solution was:
1
SIMPLE INTEREST
I
=Prt
S
=P+I
S
= P (1 + r t)1
P
= S (1 + r t)-1
57.
What amount of interest will be charged on $6500
borrowed for 5 months at a simple interest rate of 11%
per annum (i.e. 11 % pa)?
P =$6500
t = 5/12 years
I=prt
= (6500) (11/100) (5/12)