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15. A not-for-profit organisation is trying to secure funding for an overseas aid project. and are advised that a grant is available for They need 150,000 in total for the project half of the funds if they can secure the other half before the date of application (five years from today). How much needs to be invested now if the rate of interest being offered is: () 6% per annum compounded annually (1) 5% per annum compounded annually

15. A not-for-profit organisation is trying to secure funding for an overseas aid project. and are advised that a grant is available for They need 150,000 in total for the project half of the funds if they can secure the other half before the date of application (five years from today). How much needs to be invested now if the rate of interest being offered is: () 6% per annum compounded annually (1) 5% per annum compounded annually

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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FINANCIAL MATHEMATICS annum secure funding for an overseas aid project. They need €150,000 in total for the project and are advised that a grant is available for half of the funds if they can secure the other as invested at 3% per annum from today). How much needs to be invested now if the rate of interest being offered is: borrowed at 8% per annum Calculate the final value. (1) 6% per annum compounded annually borrowed at 6% per annum calculate the interest. (11) 5% per annum compounded annually 16. Howard receives a tax bill from the Revenue Commissioners for €14,000. He has the option to repay the lump sum in three years' time. He shops around for investment accounts and finds one that offers a return of 6% rowed at 3.5% per annum culate the interest. ested at 4.25% per annum ulate the interest. compounded annually for the three years; however, all investments must be in multiples of €1,000. owed at 4.5% per annum ate the final value. How much will Howard need to invest to have the €14,000 in three years' time? sted at 10.5% per annum ate the final value. 17. A football club borrowed €15,000,000 to revamp its stadium. The rate for the first year was 3.5% and the rate for the second year was 4.2%. Calculate the amount owing at the end of the second year. d at 2.35% per annum te the interest. e nearest cent, that ars' time? nearest cent, that a rate of 3.2% per n six years' time? need to invest now m to have €15,000 18. A business secures a three-year loan for €45,000 with the following conditions attached: •The loan must be repaid in full by the end of the third year. O at 3.6% per he repaid was then lowered The rate of interest is 3% for the first two years. Then it decreases by 0.5%. Calculate the total interest that will be paid on this loan (to the nearest euro). e end of the 253 1OPEN CR2 SPUSH
Transcribed Image Text:FINANCIAL MATHEMATICS annum secure funding for an overseas aid project. They need €150,000 in total for the project and are advised that a grant is available for half of the funds if they can secure the other as invested at 3% per annum from today). How much needs to be invested now if the rate of interest being offered is: borrowed at 8% per annum Calculate the final value. (1) 6% per annum compounded annually borrowed at 6% per annum calculate the interest. (11) 5% per annum compounded annually 16. Howard receives a tax bill from the Revenue Commissioners for €14,000. He has the option to repay the lump sum in three years' time. He shops around for investment accounts and finds one that offers a return of 6% rowed at 3.5% per annum culate the interest. ested at 4.25% per annum ulate the interest. compounded annually for the three years; however, all investments must be in multiples of €1,000. owed at 4.5% per annum ate the final value. How much will Howard need to invest to have the €14,000 in three years' time? sted at 10.5% per annum ate the final value. 17. A football club borrowed €15,000,000 to revamp its stadium. The rate for the first year was 3.5% and the rate for the second year was 4.2%. Calculate the amount owing at the end of the second year. d at 2.35% per annum te the interest. e nearest cent, that ars' time? nearest cent, that a rate of 3.2% per n six years' time? need to invest now m to have €15,000 18. A business secures a three-year loan for €45,000 with the following conditions attached: •The loan must be repaid in full by the end of the third year. O at 3.6% per he repaid was then lowered The rate of interest is 3% for the first two years. Then it decreases by 0.5%. Calculate the total interest that will be paid on this loan (to the nearest euro). e end of the 253 1OPEN CR2 SPUSH
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