Finance

I'm trying to understand the formula necessary to get the answers, which is $330.74 Problem: Buying a car. A student borrowed $4000 from a credit union toward purchasing a car. The interest rate on such a loan is 14% compounded quarterly, with payments due every quarter. The student wants to pay off the loan in 4 years. ...continues

Calculating the future value of a fund.

An employee gets paid at the end of each month and $60 is withheld from her paycheck for a retirement fund. The fund pays 1% per month (equivalent to 12% annually compounded monthly). What amount will be in the fund at the end of 30 months?

What is 3/4 raised to the power of infinity?

Find the sum: infinity on top of the sigma sign, with i=1 under the sigma and 8(3/4)^(i-1) on the right hand side of the sigma.

Finance

I've tried many difference formulas and I can't seem to get the answer $119,431.77 Problem: How much should Mr. Graff pay for a gold mine expected to yield an annual return of $20,000 and to have a life expectancy of 20 years, if he wants to have a 15% annual return on his investment and he can set up a sinking fund that ea ...continues

Calculating the future value of a savings account.

Mr. & Mrs. Corey are newlyweds and want to purchase a home, but they need a down payment of $10,000. If they want to buy their home in 2 years, how much should they save each month in their savings account that pays 3% per annum compounded monthly?

Finance

I can't seem to get the right answer of $108,003.59 Problem: An oil well is expected to yield an annual net return of $25,000 for the next 15 years, after which it will run dry. An investor wants a return on his investment of 20%. He can establish a sinking fund earning 10% annually. How much should he pay for the oil ...continues

Finance

I need help trying to figure out which formula to use to get $10,078.44 Problem: Mr Jones wants to save for his son's college education. If he deposits $500 every 6 months at 6% compounded semiannually, how much will he have on hand at the end of 8 years?

Finance

John is the beneficiary of a trust fund set up for him by his grandmother. If the trust fund amounts to $20,000 earning 8% compounded semiannually and he is to receive the money in equal semiannual installments for the next 15 years, how much will he receive each 6 months?

Calculating the size of quarterly payments.

Bill borrows $1000 at 5% compounded annually. He is able to establish a sinking fund to pay off the debt and interest in 7 years. The sinking fund will earn 8% compounded quarterly. What should be the size of the quarterly payments into the fund?

Working with probability and combinations.

There are 5 rotten plums in a crate of 25 plums. How many samples of 4 of the 25 plums contain (a) Only good plums? (b) Three good plums amd 1 rotten plum? (c) One or more rotten plums?