Exam 6: Mathematics of Finance

A debt of $2000 due in one year is to be repaid by a payment due two years from now and a final payment of $1000 three years from now.If the interest is at the rate of 4% compounded annually,then the payment due in two years is

After putting $10,000 down on a piece of property,a woman began paying $2500 a quarter for nine years.Given an interest rate of 7.75% compounded quarterly,how much would the property cost if the woman had paid for it in cash?

Suppose a woman purchases a building with an initial down payment of $40,000,and then makes monthly payments: $1500 at the end of each month for four years and $2000 at the end of each month for six more years.Given an interest rate of 5.5% compounded monthly,find the present value of the payments and the list price of the building.(Round your answer to the nearest dollar.)

Suppose you leave an initial amount of $315 in a savings account for 10 years.If interest is compounded monthly,use a graphing calculator to graph the compound amount S as a function of the nominal rate of interest.Determine the nominal rate of interest so that there is $519 after 10 years.

If an investment of $20,000 earns interest at an annual rate of 9% compounded continuously,then the value (in dollars)of the investment six years from now is