Business Math:
q.3
flat rate interest= (100XI)/(PXt)
First, take the deposit away from the purchase price, thats 500-50=$450
Then find out how much he pays in the monthly payments, thats 25X12X2=$600.
Then the interest paid is how much he paid, minus the purchase price after the deposit has been taken off, so I=600-450=$150.
P in the equation = purchase price after the deposit deducted, and t=2 years, so
r=(100X150)/(450X2)=16.67%, B
q.7
In TVM solver,
N= 48
I= 6.25
PV= 17500
Pmt=?
FV=0
Ppy=12
Cpy=12
End
That means pmt= -413, so the payment is $413.00, B
q.8
TVM solver again,
N= 4X7=28
I=?
PV= 100 000
Pmt = -2150
FV = -80 000
Ppy= 4
Cpy=4
End
I=6.3, A
q.9
TVM again, you have to find FV after 10 years:
N=120, I=4.45, PV= 250 000, Pmt= -1382.50, FV=?, Ppy=12, Cpy=12, End
FV = - 181324
Then use TVM again, this time:
N=?, I=4.25, PV=181324, Pmt = -1750, FV = 0, Ppy=12, Cpy=12, End
N= 129 repayments, 129/12= 10.75 years.
Then add the original 10 years to 10.75 years, you'll get 20.75 which is closest to 21, so C