PROBLEM SET (7/10)
Financial Mathematics
UNIT 7: AMORTIZATION OF A DEBT: GENERAL ANALYSIS
7.1.
A loan of 60,000 is to be repaid with annual payments at an effective rate of interest of 6% per
annum over a 4-year period. The annual payments are, respective

PROBLEM SET (5/10)
Financial Mathematics
UNIT 5: FINANCIAL TRANSACTION
5.1.
Consider a financial transaction defined by the following cash flow streams:
OF cfw_(200, 15/01/01), (200, 15/01/04), (500, 15/01/06)
IF cfw_(300, 15/01/02), (400, 15/01/05), (X,

PROBLEM SET (2/10)
Financial Mathematics
PROBLEM SET
UNIT 2: THEORY OF COMPOUND INTEREST
2.1.
Find the accumulated value corresponding to an investment of 9,000 at annual 3% effective
compound interest if
a) The term of the transaction is 18 months.
b) Th

PROBLEM SET (3/10)
Financial Mathematics
UNIT 3: INTRODUCTION TO ANNUITIES
3.1.
Let us consider a constant annual rent of 50,000 to be received from 2002 to 2008 (both
inclusive) on every 31st of December. Valuing at 4% pa, calculate its value on:
a.- 31.

PROBLEM SET (1/10)
Financial Mathematics
PROBLEM SET
UNIT 1: FUNDAMENTALS
1.1.
Find the simple interest on
(a) a 90-day loan of 500.00 at 8%;
(b) a 118-day loan of 600.00 at 7%;
1.2.
At what rate of simple interest will
(a) 1,000.00 accumulate to 1,420.00