1. Suppose $5000 is invested for five years. Calculate the amount accumulated at the end for five years if interested is compounded at a normal rate 5%
    (Teresa Bradley., Essential Mathematics, for Economics and Business., Fourth Edition.,John Wiley.,p.222., number 1) jawab financial matemathic no 1

  1. Calculate the present value of $ 6500 to received in two years time where the interest rate is 8% perannum compounded annually?
    (Teresa Bradley., Essential Mathematics, for Economics and Business., Fourth Edition.,John Wiley.,p.223., number 6) jawab financial matemathic no 2

  1. How long should it take for an investment of $3700 to grow to $5000 when interest rate compounded annually at 6.5%?
    (Teresa Bradley., Essential Mathematics, for Economics and Business., Fourth Edition.,John Wiley.,p.223., number 9) jawab financial matemathic no 3

  1. Suppose $ 2500 is invested for eight years and grow to $4525 when the annual rate of interest is i %. Calculate i
    (Teresa Bradley., Essential Mathematics, for Economics and Business., Fourth Edition.,John Wiley.,p.223., number 9) jawab financial matemathic no 4

  1. Suppose $50000 is invested at a normal interest rate of 5.5% perannum.

a. Calculate the value of investment at the end for the five years if the interest is calculated four times annually as compound interest

b. Calculate the value of investment at the end for the five years if the interest is continuously as compound interest

c. Calculate the number of years it will take for the investment to double in value if the interest is calculated four times annually as compound interest
(Teresa Bradley., Essential Mathematics, for Economics and Business., Fourth Edition.,John Wiley.,p.228., number 1 modified) jawab financial matemathic no 5

  1. Two banks in a local town quote the following interest rates. Bank A charge interest at 8.8 % per annum compounded semi annually and Bank B charge 8.75% per annmun compounded quarterly. Which bank charges the most interest?
    (Teresa Bradley., Essential Mathematics, for Economics and Business., Fourth Edition.,John Wiley.,p.228., number 12) jawab financial matemathic no 6

  1. The net cash flow for two project, A and B is as follows:

Yeas

0

1

2

3

4

Project A

-10.000

-3.000

4.000

6.000

8.000

Project B

-5.000

-2.000

1.000

3.000

5.000

a. Use the present value criterion to decide which project is the most favorable if a discount rate 6%

b. Calculate the IRR of each project. State the condition for each project to be profitbale
(Teresa Bradley., Essential Mathematics, for Economics and Business., Fourth Edition.,John Wiley.,p.236., number2) jawab financial matemathic no 7

  1. A company operates a savings scheme (interest rate 4% per annum) for its employees

a. Calculate the amount saved at the end of one year when $200 is deposited at the end of each month

b. How mucj should be saved from a monthly salary in order to have $5000 at the end of the year
(Teresa Bradley., Essential Mathematics, for Economics and Business., Fourth Edition.,John Wiley.,p.247., number1) jawab financial matemathic no 8