Aptitude :: Compound. Interest. Let Principal = P, Rate = R% per annum, Time = n years. When interest is compound Annually: Amount = P 1 + R 100
|
|
|
- Florence Owen
- 7 years ago
- Views:
Transcription
1 Interest Aptitude :: Compound Important Formulas Let Principal = P, Rate = R% per annum, Time = n years. When interest is compound Annually: Amount = P 1 + R n When interest is compounded Half-yearly: Amount = P 1 + (R/2) 2n When interest is compounded Quarterly: Amount = P 1 + (R/4) 4n When interest is compounded Annually but time is in fraction, say 3 years. Amount = P 1 + R 3x 1 + R When Rates are different for different years, say R 1 %, R 2 %, R 3 % for 1 st, 2 nd and 3 rd year respectively. Then, Amount = P 1 + R R R 3. Present worth of Rs. x due n years hence is given by: Present Worth = x 1 + R.
2
3 Compound Interest > General Questions 1. A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs each on 1 st January and 1 st July of a year. At the end of the year, the amount he would have gained by way of interest is: A.Rs. 120 B. Rs. 121 C. Rs. 122 D.Rs. 123 Answer: Option B 5 5 Amount = Rs x x x 2 x = Rs x 41 x x = Rs x x 41 x 81 = Rs. 40 x 40 = Rs C.I. = Rs. ( ) = Rs The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is: A.625 B. 630 C. 640 D.650 Answer: Option A Let the sum be Rs. x. Then, C.I. = x x = x - x = x x x 4 x 2 2x S.I. = = x 2x - =
4 x = There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate? A.Rs B. Rs C. Rs D.Rs E. None of these Answer: Option C Let P = Rs.. Then, S.I. Rs. 60 and T = 6 years. R = x 60 = 10% p.a. x 6 Now, P = Rs T = 3 years and R = 10% p.a. C.I. = Rs x = Rs x = What is the difference between the compound interests on Rs for 1 years at 4% per annum compounded yearly and half-yearly? A.Rs B. Rs C. Rs D.Rs Answer: Option A C.I. when interest compounded yearly = Rs x x 1 + x 4 = Rs x 26 x
5 = Rs C.I. when interest is compounded half-yearly = Rs x = Rs x 51 x 51 x = Rs Difference = Rs. ( ) = Rs The compound interest on Rs. 30,000 at 7% per annum is Rs The period (in years) is: A.2 B C. 3 D.4 Answer: Option A Amount = Rs. ( ) = Rs Let the time be n years. Then, n= n= = = n = 2 years. 6. What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.? A.Rs B. Rs C. Rs D.Rs E. None of these Answer: Option C Amount = Rs x = Rs x28x28x28
6 = Rs C.I. = Rs. ( ) = Rs At what rate of compound interest per annum will a sum of Rs become Rs in 2 years? A.6% B. 6.5% C. 7% D.7.5% Answer: Option A Let the rate be R% p.a. Then, 1200 x 1 + R 2= R 2= = R 106 2= R = 106 R = 6% 8. The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is: A.3 B. 4 C. 5 D.6 Answer: Option B P n> 2P n> Now, x x x >
7 So, n = 4 years. 9. Albert invested an amount of Rs in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit? A.Rs B. Rs C. Rs D.None of these Answer: Option C Amount = Rs x = Rs x 21 x = Rs The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is: A. 6.06% B. 6.07% C. 6.08% D. 6.09% Answer: Option D Amount of Rs. for 1 year when compounded half-yearly = Rs. x = Rs Effective rate = ( )% = 6.09% 11. Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs for 2 years at 10% per annum. The sum placed on simple interest is: A. Rs B. Rs C. Rs D. Rs Answer: Option C
8 C.I. = Rs x = Rs x 11 x = Rs x Sum = Rs. = Rs x If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time? A. Rs B. Rs. 52 C. Rs D. Rs. 60 Answer: Option A Sum = Rs. 50 x = Rs x 5 Amount = Rs. 500 x = Rs. 500 x 21 x = Rs C.I. = Rs. ( ) = Rs The difference between simple interest and compound on Rs for one year at 10% per annum reckoned half-yearly is: A. Rs B. Rs. 3 C. Rs D. Rs. 4 E. None of these Answer: Option B S.I. = Rs 1200 x 10 x 1 = Rs. 120.
9 C.I. = Rs x = Rs Difference = Rs. ( ) = Rs The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum? A. 8 B. 10 C. 12 D. Cannot be determined E. None of these Answer: Option A x 1 + R x R x = R R = 96 ( + R) (200 x R) R 2 96 x 2 = = 64 3 = 96 R = 8. Rate = 8%. 15. The compound interest on a certain sum for 2 years at 10% per annum is Rs The simple interest on the same sum for double the time at half the rate percent per annum is: A. Rs. 400 B. Rs. 500 C. Rs. 600 D. Rs. 800 Answer: Option B
10 Let the sum be Rs. P. Then, P P = 525 P P = = x = Sum = Rs So, S.I. = Rs x 5 x 4 = Rs. 500
11 Compound Interest > Data Sufficiency 1 Directions to Solve Each of the questions given below consists of a statement and / or a question and two statements numbered I and II given below it. You have to decide whether the data provided in the statement(s) is / are sufficient to answer the given question. Read the both statements and Give answer (A) if the data in Statement I alone are sufficient to answer the question, while the data in Statement II alone are not sufficient to answer the question. Give answer (B) if the data in Statement II alone are sufficient to answer the question, while the data in Statement I alone are not sufficient to answer the question. Give answer (C) if the data either in Statement I or in Statement II alone are sufficient to answer the question. Give answer (D) if the data even in both Statements I and II together are not sufficient to answer the question. Give answer(e) if the data in both Statements I and II together are necessary to answer the question. 1. What is the rate of compound interest? I. The principal was invested for 4 years. II. The earned interest was Rs A.I alone sufficient while II alone not sufficient to answer B. II alone sufficient while I alone not sufficient to answer C. Either I or II alone sufficient to answer D.Both I and II are not sufficient to answer E. Both I and II are necessary to answer Answer: Option D Let Principal = Rs. P and Rate = R% p.a. Then, Amount = Rs. P 1 + R 4 C.I. = P 1 + R 4-1 P 1 + R 4-1 = Clearly, it does not give the answer.
12 Correct answer is (E). 2. What will be compounded amount? I. Rs. 200 was borrowed for 192 months at 6% compounded annually. II. Rs. 200 was borrowed for 16 years at 6%. A.I alone sufficient while II alone not sufficient to answer B. II alone sufficient while I alone not sufficient to answer C. Either I or II alone sufficient to answer D.Both I and II are not sufficient to answer E. Both I and II are necessary to answer Answer: Option C I. Amount = Rs. 200 x II. Amount = Rs. 200 x Thus, I as well as II gives the answer. Correct answer is (C). 3. An amount of money was lent for 3 years. What will be the difference between the simple and the compound interest earned on it at the same rate? I. The rate of interest was 8 p.c.p.a. II. The total amount of simple interest was Rs A.I alone sufficient while II alone not sufficient to answer B. II alone sufficient while I alone not sufficient to answer C. Either I or II alone sufficient to answer D.Both I and II are not sufficient to answer E. Both I and II are necessary to answer Answer: Option E
13 Given: T = 3 years. I. gives: R = 8% p.a. II. gives: S.I. = Rs Thus, P = Rs. 5000, R = 8% p.a. and T = 3 years. Difference between C.I. and S.I. may be obtained. So, the correct answer is (E).
14 Compound Interest > Data Sufficiency 2 Directions to Solve Each of the questions given below consists of a question followed by three statements. You have to study the question and the statements and decide which of the statement(s) is/are necessary to answer the question. 1. What is the rate of interest p.c.p.a.? I. An amount doubles itself in 5 years on simple interest. II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs III. Simple interest earned per annum is Rs A.I only B. II and III only C. All I, II and III D.Any two of the three E. I only or II and III only Answer: Option E I. P x R x 5 = P R = 20. II. P 1 + R 2- P - P x R x 2 = 400 PR 2 = III. P x R x 1 = 2000 PR = PR 2 = PR R = 20. Thus I only or (II and III) give answer. Correct answer is (E). 2. What will be the compound interest earned on an amount of Rs in 2 years? I. The simple interest on the same amount at the same rate of interest in 5 years is Rs II. The compound interest and the simple interest earned in one year is the same. III. The amount becomed more than double on compound interest in 10 years. A.I only B. I and II only C. II and III only
15 D.I and III only E. None of these Answer: Option A P = Rs & T = 2 years. I. S.I. on Rs in 5 years is Rs x R x 5 = 2000 R = 8. Thus I only gives the answer. Correct answer is (A).
16 Compound Interest > Data Sufficiency 3 Directions to Solve In each of the following questions, a question is asked and is followed by three statements. While answering the question, you may or may not require the data provided in all the statements. You have to read the question and the three statements and then decide whether the question can be answered with any one or two of the statements or all the three statements are required to answer the question. The answer number bearing the statements, which can be dispensed with, if any, while answering the question is your answer. 1. Mr. Gupta borrowed a sum of money on compound interest. What will be the amount to be repaid if he is repaying the entire amount at the end of 2 years? I. The rate of interest is 5 p.c.p.a. II. Simple interest fetched on the same amount in one year is Rs III. The amount borrowed is 10 times the simple interest in 2 years. A.I only B. III only C. I or II only D.II and Either I or III only E. All I, II and III are required Answer: Option D I. gives, Rate = 5% p.a. II. gives, S.I. for 1 year = Rs III. gives, sum = 10 x (S.I. for 2 years). Now I, and II give the sum. For this sum, C.I. and hence amount can be obtained. Thus, III is redundant. Again, II gives S.I. for 2 years = Rs. (600 x 2) = Rs Now, from III, Sum = Rs. (10 x 1200) = Rs Thus, Rate = x 1200 = 5% p.a. 2 x 12000
17 Thus, C.I. for 2 years and therefore, amount can be obtained. Thus, I is redundant. Hence, I or III redundant. 2. What is the compound interest earned at the end of 3 years? I. Simple interest earned on that amount at the same rate and for the same period is Rs II. The rate of interest is 10 p.c.p.a. III. Compound interest for 3 years is more than the simple interest for that period by Rs A.I and II only B. II and III only C. I and III only D.Either II or III only E. Any two of the three Answer: Option D I. gives, S.I for 3 years = Rs II. gives, Rate = 10% p.a. III. gives, (C.I.) - (S.I.) = Rs Clearly, using I and III we get C.I. = Rs. ( ). Thus, II is redundant. Also, from I and II, we get sum = x 4500 = x 3 Now C.I. on Rs at 10% p.a. for 3 years may be obtained. Thus, III is redundant. Either II or III is redundant.
Basic Concept of Time Value of Money
Basic Concept of Time Value of Money CHAPTER 1 1.1 INTRODUCTION Money has time value. A rupee today is more valuable than a year hence. It is on this concept the time value of money is based. The recognition
Time Value of Money. Work book Section I True, False type questions. State whether the following statements are true (T) or False (F)
Time Value of Money Work book Section I True, False type questions State whether the following statements are true (T) or False (F) 1.1 Money has time value because you forgo something certain today for
Time Value of Money PAPER 3A: COST ACCOUNTING CHAPTER 2 BY: CA KAPILESHWAR BHALLA
Time Value of Money 1 PAPER 3A: COST ACCOUNTING CHAPTER 2 BY: CA KAPILESHWAR BHALLA Learning objectives 2 Understand the Concept of time value of money. Understand the relationship between present and
The Institute of Chartered Accountants of India
CHAPTER 4 SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY APPLICATIONS SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY- APPLICATIONS LEARNING OBJECTIVES After studying this chapter students will be able
APPENDIX. Interest Concepts of Future and Present Value. Concept of Interest TIME VALUE OF MONEY BASIC INTEREST CONCEPTS
CHAPTER 8 Current Monetary Balances 395 APPENDIX Interest Concepts of Future and Present Value TIME VALUE OF MONEY In general business terms, interest is defined as the cost of using money over time. Economists
Future Value of an Annuity Sinking Fund. MATH 1003 Calculus and Linear Algebra (Lecture 3)
MATH 1003 Calculus and Linear Algebra (Lecture 3) Future Value of an Annuity Definition An annuity is a sequence of equal periodic payments. We call it an ordinary annuity if the payments are made at the
2 Time Value of Money
2 Time Value of Money BASIC CONCEPTS AND FORMULAE 1. Time Value of Money 2. Simple Interest 3. Compound Interest 4. Present Value of a Sum of Money 5. Future Value It means money has time value. A rupee
Ch 3 Understanding money management
Ch 3 Understanding money management 1. nominal & effective interest rates 2. equivalence calculations using effective interest rates 3. debt management If payments occur more frequently than annual, how
$496. 80. Example If you can earn 6% interest, what lump sum must be deposited now so that its value will be $3500 after 9 months?
Simple Interest, Compound Interest, and Effective Yield Simple Interest The formula that gives the amount of simple interest (also known as add-on interest) owed on a Principal P (also known as present
THE TIME VALUE OF MONEY
QUANTITATIVE METHODS THE TIME VALUE OF MONEY Reading 5 http://proschool.imsindia.com/ 1 Learning Objective Statements (LOS) a. Interest Rates as Required rate of return, Discount Rate and Opportunity Cost
Ch. 11.2: Installment Buying
Ch. 11.2: Installment Buying When people take out a loan to make a big purchase, they don t often pay it back all at once in one lump-sum. Instead, they usually pay it back back gradually over time, in
Simple Interest. and Simple Discount
CHAPTER 1 Simple Interest and Simple Discount Learning Objectives Money is invested or borrowed in thousands of transactions every day. When an investment is cashed in or when borrowed money is repaid,
ICASL - Business School Programme
ICASL - Business School Programme Quantitative Techniques for Business (Module 3) Financial Mathematics TUTORIAL 2A This chapter deals with problems related to investing money or capital in a business
5.1 Simple and Compound Interest
5.1 Simple and Compound Interest Question 1: What is simple interest? Question 2: What is compound interest? Question 3: What is an effective interest rate? Question 4: What is continuous compound interest?
C:\Documents and Settings\tracey_hbutters\Desktop\mathematics\year_levels\math_stage6\General\hsc\financial_maths\financial5\annuities_loan_repa
Annuities and Loan Repayments H General Maths HSC NAME: 1 HSC CAPACITY MATRIX GENERAL MATHEMATICS TOPIC: Financial Mathematics 5 Annuities & loan repayments 3 weeks AM1 rn1 CONTENT CAPACITY BREAKDOWN!
3. Time value of money. We will review some tools for discounting cash flows.
1 3. Time value of money We will review some tools for discounting cash flows. Simple interest 2 With simple interest, the amount earned each period is always the same: i = rp o where i = interest earned
LO.a: Interpret interest rates as required rates of return, discount rates, or opportunity costs.
LO.a: Interpret interest rates as required rates of return, discount rates, or opportunity costs. 1. The minimum rate of return that an investor must receive in order to invest in a project is most likely
CARMEN VENTER COPYRIGHT www.futurefinance.co.za 0828807192 1
Carmen Venter CFP WORKSHOPS FINANCIAL CALCULATIONS presented by Geoff Brittain Q 5.3.1 Calculate the capital required at retirement to meet Makhensa s retirement goals. (5) 5.3.2 Calculate the capital
Vilnius University. Faculty of Mathematics and Informatics. Gintautas Bareikis
Vilnius University Faculty of Mathematics and Informatics Gintautas Bareikis CONTENT Chapter 1. SIMPLE AND COMPOUND INTEREST 1.1 Simple interest......................................................................
The Time Value of Money Part 2B Present Value of Annuities
Management 3 Quantitative Methods The Time Value of Money Part 2B Present Value of Annuities Revised 2/18/15 New Scenario We can trade a single sum of money today, a (PV) in return for a series of periodic
Example 1 - Solution. Since the problém is of the form "find F when given P" the formula to use is F = P(F/P, 8%, 5) = $10,000(1.4693) = $14,693.
Example 1 Ms. Smith loans Mr. Brown $10,000 with interest compounded at a rate of 8% per year. How much will Mr. Brown owe Ms. Smith if he repays the loan at the end of 5 years? Example 1 - Solution Since
MGF 1107 Spring 11 Ref: 606977 Review for Exam 2. Write as a percent. 1) 3.1 1) Write as a decimal. 4) 60% 4) 5) 0.085% 5)
MGF 1107 Spring 11 Ref: 606977 Review for Exam 2 Mr. Guillen Exam 2 will be on 03/02/11 and covers the following sections: 8.1, 8.2, 8.3, 8.4, 8.5, 8.6. Write as a percent. 1) 3.1 1) 2) 1 8 2) 3) 7 4 3)
The Time Value of Money/ Present Values Appendix C
The Time Value Money/ Present Values Appendix C THIS IS ABOUT THE BASICS You should become familiar with the concept present values and the basics how they work using the tables. This is NOT intended to
Time Value of Money. 2014 Level I Quantitative Methods. IFT Notes for the CFA exam
Time Value of Money 2014 Level I Quantitative Methods IFT Notes for the CFA exam Contents 1. Introduction...2 2. Interest Rates: Interpretation...2 3. The Future Value of a Single Cash Flow...4 4. The
Compound Interest. Invest 500 that earns 10% interest each year for 3 years, where each interest payment is reinvested at the same rate:
Compound Interest Invest 500 that earns 10% interest each year for 3 years, where each interest payment is reinvested at the same rate: Table 1 Development of Nominal Payments and the Terminal Value, S.
Lecture 5: Put - Call Parity
Lecture 5: Put - Call Parity Reading: J.C.Hull, Chapter 9 Reminder: basic assumptions 1. There are no arbitrage opportunities, i.e. no party can get a riskless profit. 2. Borrowing and lending are possible
Time Value of Money Practice Questions Irfanullah.co
1. You are trying to estimate the required rate of return for a particular investment. Which of the following premiums are you least likely to consider? A. Inflation premium B. Maturity premium C. Nominal
, plus the present value of the $1,000 received in 15 years, which is 1, 000(1 + i) 30. Hence the present value of the bond is = 1000 ;
2 Bond Prices A bond is a security which offers semi-annual* interest payments, at a rate r, for a fixed period of time, followed by a return of capital Suppose you purchase a $,000 utility bond, freshly
FinQuiz Notes 2 0 1 5
Reading 5 The Time Value of Money Money has a time value because a unit of money received today is worth more than a unit of money to be received tomorrow. Interest rates can be interpreted in three ways.
Chapter 1 The Measurement of Interest
Interest: the compensation that a borrower of capital pays to a lender of capital for its use. It can be viewed as a form of rent that the borrower pays to the lender to compensate for the loss of use
FAQs on Debenture Trustee
FAQs on Debenture Trustee 1. What is a Debenture? A debenture is an instrument of debt executed by the company acknowledging its obligation to repay the sum at a specified rate and also carrying an interest.
Financial Mathematics for Actuaries. Chapter 1 Interest Accumulation and Time Value of Money
Financial Mathematics for Actuaries Chapter 1 Interest Accumulation and Time Value of Money 1 Learning Objectives 1. Basic principles in calculation of interest accumulation 2. Simple and compound interest
10.6 Functions - Compound Interest
10.6 Functions - Compound Interest Objective: Calculate final account balances using the formulas for compound and continuous interest. An application of exponential functions is compound interest. When
Chapter 2 Time value of money
Chapter 2 Time value of money Interest: the cost of money Economic equivalence Interest formulas single cash flows Equal-payment series Dealing with gradient series Composite cash flows. Power-Ball Lottery
Practice Problems. Use the following information extracted from present and future value tables to answer question 1 to 4.
PROBLEM 1 MULTIPLE CHOICE Practice Problems Use the following information extracted from present and future value tables to answer question 1 to 4. Type of Table Number of Periods Interest Rate Factor
E INV 1 AM 11 Name: INTEREST. There are two types of Interest : and. The formula is. I is. P is. r is. t is
E INV 1 AM 11 Name: INTEREST There are two types of Interest : and. SIMPLE INTEREST The formula is I is P is r is t is NOTE: For 8% use r =, for 12% use r =, for 2.5% use r = NOTE: For 6 months use t =
Chapter 4 Nominal and Effective Interest Rates
Chapter 4 Nominal and Effective Interest Rates Chapter 4 Nominal and Effective Interest Rates INEN 303 Sergiy Butenko Industrial & Systems Engineering Texas A&M University Nominal and Effective Interest
Customer Lifetime Value II
Customer Lifetime Value II This module covers the concepts of CLV, CLV Remaining, retention rate, attrition rate, discount rate, churn rate, and customer acquisition and related costs. Authors: Paul Farris
The Time Value of Money
The Time Value of Money Time Value Terminology 0 1 2 3 4 PV FV Future value (FV) is the amount an investment is worth after one or more periods. Present value (PV) is the current value of one or more future
3. Present value of Annuity Problems
Mathematcs of Fnance The formulae 1. A = P(1 +.n) smple nterest 2. A = P(1 + ) n compound nterest formula 3. A = P(1-.n) deprecaton straght lne 4. A = P(1 ) n compound decrease dmshng balance 5. P = -
Mathematics. Rosella Castellano. Rome, University of Tor Vergata
and Loans Mathematics Rome, University of Tor Vergata and Loans Future Value for Simple Interest Present Value for Simple Interest You deposit E. 1,000, called the principal or present value, into a savings
Statistical Models for Forecasting and Planning
Part 5 Statistical Models for Forecasting and Planning Chapter 16 Financial Calculations: Interest, Annuities and NPV chapter 16 Financial Calculations: Interest, Annuities and NPV Outcomes Financial information
Main TVM functions of a BAII Plus Financial Calculator
Main TVM functions of a BAII Plus Financial Calculator The BAII Plus calculator can be used to perform calculations for problems involving compound interest and different types of annuities. (Note: there
All about deduction under section 80C and tax planning
All about deduction under section 80C and tax planning Background for Section 80C of the Income Tax Act (India) / What are eligible investments for Section 80C: Section 80C replaced the existing Section
Appendix C- 1. Time Value of Money. Appendix C- 2. Financial Accounting, Fifth Edition
C- 1 Time Value of Money C- 2 Financial Accounting, Fifth Edition Study Objectives 1. Distinguish between simple and compound interest. 2. Solve for future value of a single amount. 3. Solve for future
Compound Interest Practice Problems (99-07)
IB Math Studies 1: Algebra & Numbers: Compound Interest Alei - Desert Academy 2013-14 Compound Interest Practice Problems (99-07) 1. Two brothers Adam and Ben each inherit $6500. Adam invests his money
SECURITIES COMMISSION OF THE BAHAMAS PUBLIC NOTICE
SECURITIES COMMISSION OF THE BAHAMAS PUBLIC NOTICE No. 8 of 2010 December 1 st, 2010 FACTS RELATING TO THE CALCULATION OF THE RATE OF INTEREST TO BE CHARGED UNDER THE RATE OF INTEREST ACT, 1990 This NOTICE
Time Value of Money CAP P2 P3. Appendix. Learning Objectives. Conceptual. Procedural
Appendix B Time Value of Learning Objectives CAP Conceptual C1 Describe the earning of interest and the concepts of present and future values. (p. B-1) Procedural P1 P2 P3 P4 Apply present value concepts
Percent, Sales Tax, & Discounts
Percent, Sales Tax, & Discounts Many applications involving percent are based on the following formula: Note that of implies multiplication. Suppose that the local sales tax rate is 7.5% and you purchase
PERCENTAGE AND ITS APPLICATIONS
Percentage and Its Applications MODULE - 2 8 PERCENTAGE AND ITS APPLICATIONS You must have seen advertisements in newspapers, television and hoardings etc of the following type: Sale, up to 60% off. Voters
All you need to know about the. Seniors Money Lifetime Loan. Information for you, your family and your advisers
All you need to know about the Seniors Money Lifetime Loan Information for you, your family and your advisers 1 Contents This brochure from Ireland s only specialist Lifetime Mortgage provider highlights
Retirement Annuity Contract & Self-Invested Personal Pension ( SIPP ) Company. Guidance Notes & Key Features
Retirement Annuity Contract & Self-Invested Personal Pension ( SIPP ) Company Guidance Notes & Key Features Background The Income Tax (Jersey) Law 1961 allows individuals to look after their own pension
MODULE 2. Finance An Introduction
MODULE 2 Finance An Introduction The functions of finance in an organization is interlinked with other managerial responsibilities and in many instances, the finance manager could also done the role of
Reducing balance loans
Reducing balance loans 5 VCEcoverage Area of study Units 3 & 4 Business related mathematics In this chapter 5A Loan schedules 5B The annuities formula 5C Number of repayments 5D Effects of changing the
Rate of interest on term deposits A micro level study
Rate of interest on term deposits A micro level study Ashish Das 1 and Praggya Das 2 1 Division of Theoretical Statistics and Mathematics, Indian Statistical Institute, New Delhi-110016 2 Department of
SOCIETY OF ACTUARIES/CASUALTY ACTUARIAL SOCIETY EXAM FM SAMPLE QUESTIONS
SOCIETY OF ACTUARIES/CASUALTY ACTUARIAL SOCIETY EXAM FM FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS Copyright 2005 by the Society of Actuaries and the Casualty Actuarial Society Some of the questions
MODULE: PRINCIPLES OF FINANCE
Programme: BSc (Hons) Financial Services with Law BSc (Hons) Accounting with Finance BSc (Hons) Banking and International Finance BSc (Hons) Management Cohort: BFSL/13/FT Aug BACF/13/PT Aug BACF/13/FT
Appendix. Time Value of Money. Financial Accounting, IFRS Edition Weygandt Kimmel Kieso. Appendix C- 1
C Time Value of Money C- 1 Financial Accounting, IFRS Edition Weygandt Kimmel Kieso C- 2 Study Objectives 1. Distinguish between simple and compound interest. 2. Solve for future value of a single amount.
Best Investment Options Under Section 80C to save tax
Best Investment Options Under Section 80C to save tax -Prathiba Girish Executive Summary - Most of the Income Tax payers try to save tax by saving under Section 80C of the Income Tax Act. However, it is
Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu
Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 16: Determinants of the Money
Exercise 1 for Time Value of Money
Exercise 1 for Time Value of Money MULTIPLE CHOICE 1. Which of the following statements is CORRECT? a. A time line is not meaningful unless all cash flows occur annually. b. Time lines are useful for visualizing
14 ARITHMETIC OF FINANCE
4 ARITHMETI OF FINANE Introduction Definitions Present Value of a Future Amount Perpetuity - Growing Perpetuity Annuities ompounding Agreement ontinuous ompounding - Lump Sum - Annuity ompounding Magic?
Lesson Plan -- Simple and Compound Interest
Lesson Plan -- Simple and Compound Interest Chapter Resources - Lesson 4-14 Simple Interest - Lesson 4-14 Simple Interest Answers - Lesson 4-15 Compound Interest - Lesson 4-15 Compound Interest Answers
ENGINEERING ECONOMICS AND FINANCE
CHAPTER Risk Analysis in Engineering and Economics ENGINEERING ECONOMICS AND FINANCE A. J. Clark School of Engineering Department of Civil and Environmental Engineering 6a CHAPMAN HALL/CRC Risk Analysis
HFCC Math Lab Arithmetic - 4. Addition, Subtraction, Multiplication and Division of Mixed Numbers
HFCC Math Lab Arithmetic - Addition, Subtraction, Multiplication and Division of Mixed Numbers Part I: Addition and Subtraction of Mixed Numbers There are two ways of adding and subtracting mixed numbers.
Value of Money Concept$
Value of Money Concept$ Time, not timing is the key to investing 2 Introduction Time Value of Money Application of TVM in financial planning : - determine capital needs for retirement plan - determine
As applicable on the day of the deposit and will be fixed for full term of your investment.
Fixed Deposit Accounts Account Specific Terms and Conditions The Fixed Term Accounts are fixed rate, Fixed Term Deposit Accounts are accounts that are available to existing account holders who can lock
Applications of Geometric Se to Financ Content Course 4.3 & 4.4
pplications of Geometric Se to Financ Content Course 4.3 & 4.4 Name: School: pplications of Geometric Series to Finance Question 1 ER before DIRT Using one of the brochures for NTM State Savings products,
Money Market and Debt Instruments
Prof. Alex Shapiro Lecture Notes 3 Money Market and Debt Instruments I. Readings and Suggested Practice Problems II. Bid and Ask III. Money Market IV. Long Term Credit Markets V. Additional Readings Buzz
Chapter 9. Year Revenue COGS Depreciation S&A Taxable Income After-tax Operating Income 1 $20.60 $12.36 $1.00 $2.06 $5.18 $3.11
Chapter 9 9-1 We assume that revenues and selling & administrative expenses will increase at the rate of inflation. Year Revenue COGS Depreciation S&A Taxable Income After-tax Operating Income 1 $20.60
Credit Card Loans. Student Worksheet
Student Worksheet Credit Card Loans Name: Recall the formula for simple interest where, I is the interest owed P is the principal amount outstanding r is the interest rate t is the time in years. Note:
Study Questions for Actuarial Exam 2/FM By: Aaron Hardiek June 2010
P a g e 1 Study Questions for Actuarial Exam 2/FM By: Aaron Hardiek June 2010 P a g e 2 Background The purpose of my senior project is to prepare myself, as well as other students who may read my senior
Inquiry into Access of Small Business to Finance
Inquiry into Access of Small Business to Finance Reference http://www.aph.gov.au/senate/committee/economics_ctte/small_business_10/ index.htm The current structure of the financial system means that large
Using Credit. SSEPF4.a, SSEPF4.b, SSEPF4.c
Using Credit SSEPF4.a, SSEPF4.b, SSEPF4.c Loans and Credit Cards: Buy Now, Pay Later The U.S. economy runs on credit. Credit The ability to obtain goods now, based on an agreement to pay for them later.
Present Value (PV) Tutorial
EYK 15-1 Present Value (PV) Tutorial The concepts of present value are described and applied in Chapter 15. This supplement provides added explanations, illustrations, calculations, present value tables,
(b) (i) How much is to be paid as a deposit under this option? (1) Find the cost of the loan under Friendly Credit Terms.
1. Angela needs $4000 to pay for a car. She was given two options by the car seller. Option A: Outright Loan A loan of $4000 at a rate of 12% per annum compounded monthly. Find (i) (ii) the cost of this
Review Page 468 #1,3,5,7,9,10
MAP4C Financial Student Checklist Topic/Goal Task Prerequisite Skills Simple & Compound Interest Video Lesson Part Video Lesson Part Worksheet (pages) Present Value Goal: I will use the present value formula
Chapter Two. THE TIME VALUE OF MONEY Conventions & Definitions
Chapter Two THE TIME VALUE OF MONEY Conventions & Definitions Introduction Now, we are going to learn one of the most important topics in finance, that is, the time value of money. Note that almost every
Continuous Compounding and Discounting
Continuous Compounding and Discounting Philip A. Viton October 5, 2011 Continuous October 5, 2011 1 / 19 Introduction Most real-world project analysis is carried out as we ve been doing it, with the present
THE REPUBLIC OF TRINIDAD AND TOBAGO
THE REPUBLIC OF TRINIDAD AND TOBAGO IN THE HIGH COURT OF JUSTICE SUB REGISTRY SAN FERNANDO H.C.A. No. S 2161 of 1986 H..C.A. No. S 2162 of 1986 H.C.A. No. S 2163 of 1986 H.C.A. No. S 2164 of 1986 BETWEEN
FINANCIAL CALCULATIONS
FINANCIAL CALCULATIONS 1 Main function is to calculate payments, determine interest rates and to solve for the present or future value of a loan or an annuity 5 common keys on financial calculators: N
Level 3 Certificate in Advanced Business Calculations
LCCI International Qualifications Level 3 Certificate in Advanced Business Calculations Syllabus Effective from 2001 For further information contact us: Tel. +44 (0) 8707 202909 Email. enquiries@ediplc.com
Annuities and loan. repayments. In this chapter. syllabusreference. Financial mathematics 5 Annuities and loan. repayments
Annuities and loan repayments 8 syllabusreference Financial mathematics 5 Annuities and loan repayments In this chapter 8A 8B 8C 8D Future value of an annuity Present value of an annuity Future and present
Duration Gap Analysis
appendix 1 to chapter 9 Duration Gap Analysis An alternative method for measuring interest-rate risk, called duration gap analysis, examines the sensitivity of the market value of the financial institution
INSTITUTE OF ACTUARIES OF INDIA
INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 13 th May 2015 Subject CT5 General Insurance, Life and Health Contingencies Time allowed: Three Hours (10.30 13.30 Hrs) Total Marks: 100 INSTRUCTIONS TO THE
LESSON SUMMARY. Mathematics for Buying, Selling, Borrowing and Investing
LESSON SUMMARY CXC CSEC MATHEMATICS UNIT Four: Consumer Arithmetic Lesson 5 Mathematics for Buying, Selling, Borrowing and Investing Textbook: Mathematics, A Complete Course by Raymond Toolsie, Volume
Introduction to Real Estate Investment Appraisal
Introduction to Real Estate Investment Appraisal Maths of Finance Present and Future Values Pat McAllister INVESTMENT APPRAISAL: INTEREST Interest is a reward or rent paid to a lender or investor who has
Percentages. You will need a calculator 20% =
What is a percentage? Percentage just means parts per hundred, for example 20% stands for 20 parts per hundred. 20% is a short way of writing 20 over a hundred. When using a percentage in a calculation
ST334 ACTUARIAL METHODS
ST334 ACTUARIAL METHODS version 214/3 These notes are for ST334 Actuarial Methods. The course covers Actuarial CT1 and some related financial topics. Actuarial CT1 which is called Financial Mathematics
Finite Mathematics. CHAPTER 6 Finance. Helene Payne. 6.1. Interest. savings account. bond. mortgage loan. auto loan
Finite Mathematics Helene Payne CHAPTER 6 Finance 6.1. Interest savings account bond mortgage loan auto loan Lender Borrower Interest: Fee charged by the lender to the borrower. Principal or Present Value:
Personal Plus Student Edition - Features and Benefits
WHY USE QUICKEN PERSONAL PLUS IN TEACHING ABOUT PERSONAL AND BUSINESS FINANCIAL MANAGEMENT? This article focuses on the features of Personal Plus and how it can be used to enhance students financial management
USING THE SHARP EL 738 FINANCIAL CALCULATOR
USING THE SHARP EL 738 FINANCIAL CALCULATOR Basic financial examples with financial calculator steps Prepared by Colin C Smith 2010 Some important things to consider 1. These notes cover basic financial
With compound interest you earn an additional $128.89 ($1628.89 - $1500).
Compound Interest Interest is the amount you receive for lending money (making an investment) or the fee you pay for borrowing money. Compound interest is interest that is calculated using both the principle
ENDOWMENT PLANS. The Future Solution www.thefuturesolution.com
ENDOWMENT PLANS Jeevan Anand 149 Endowment with Profit 14 Limited Payment Endowment with profit 48 Jeevan Mitra 88 Jeevan Saathi 89 Marriage Educational Annuity 90 New Janaraksha 91 Jeevan Mitra Triple
Determination of Forward and Futures Prices
Determination of Forward and Futures Prices Options, Futures, and Other Derivatives, 8th Edition, Copyright John C. Hull 2012 Short selling A popular trading (arbitrage) strategy is the shortselling or
EXPONENTIAL FUNCTIONS 8.1.1 8.1.6
EXPONENTIAL FUNCTIONS 8.1.1 8.1.6 In these sections, students generalize what they have learned about geometric sequences to investigate exponential functions. Students study exponential functions of the
How To Read The Book \"Financial Planning\"
![How To Read The Book \Financial Planning\](/thumbs/24/2776511.jpg "How To Read The Book \Financial Planning\")
Time Value of Money Reading 5 IFT Notes for the 2015 Level 1 CFA exam Contents 1. Introduction... 2 2. Interest Rates: Interpretation... 2 3. The Future Value of a Single Cash Flow... 4 4. The Future Value
Concept 5. Inflation What is inflation? Inflation means prices are rising and the purchasing power of the dollar is declining.
Concept 5. Inflation What is inflation? Inflation means prices are rising and the purchasing power of the dollar is declining. What is inflation rate? The inflation rate is the percentage increase in prices
INTERPRETATION NOTE: NO. 58 (Issue 2) DATE: 4 October 2012
INTERPRETATION NOTE: NO. 58 (Issue 2) DATE: 4 October 2012 ACT : INCOME TAX ACT NO. 58 OF 1962 (the Act) SECTION : SECTION 1(1), DEFINITION OF GROSS INCOME SUBJECT : THE BRUMMERIA CASE AND THE RIGHT TO