Mathematics of Finance Hw Essay
1 Prove which of the following options is the most interesting one:
a) To invest 5,000€ in a bank account that offers an annual simple interest rate of 6%, for 10 months
b) To invest 5,000€ in a bank account that offers an annual compound interest rate of 6%, for 10 months
The bank pays interests once per month
a)
b)
So, option b) is the best.
2 Prove which of the following options is the most interesting one:
a) To invest 5,000€ in a bank account that offers an annual simple interest rate of 6%, for 1 year
b) To invest 5,000€ in a bank account that offers an annual compound interest rate of 6%, for 1 year
The bank pays interests once per month
a)
b)
So, option b) is the best.
3 Prove which …show more content…
If we do it with simple interest rate:
If we do it with compound interest rate:
8 Today I’ll invest 5,000€ in a bank account that offers an annual interest rate of 12%. The bank pays interests once per year. How much money will I have in that account in one year?
If we do it with simple interest rate:
If we do it with compound interest rate:
9 How much money should I invest today, in a bank account that offers a monthly interest rate of 1%, in order to get 100,000€ in two years?
Let’s do it with compound interest rate, and monthly basis:
10 How much money should I invest today, in a bank account that offers an annual interest rate of 12% (interests will be paid once per month), in order to get 100,000€ in two years?
Let’s do it with compound interest rate:
11 How much money should I invest today, in a bank account that offers an annual interest rate of 12% (interests will be paid once per year), in order to get 100,000€ in two years?
Let’s do it with compound interest rate:
12 How much money should I invest today, in a bank account that offers an annual interest rate of 12% (interests will be paid once per semester), in order to get 100,000€ in two years?
Let’s do it with compound interest rate:
13 You have been paid with a bank draft with a nominal value of 25,000€ to be paid after 90 days. But you need cash

HW 2 Fundamentals of corporate finance
4171 Words  17 PagesScore: 120 1. out of 120 points (100%) award: 10 out of 10.00 points Just Dew It Corporation reports the following balance sheet information for 2011 and 2012. JUST DEW IT CORPORATION 2011 and 2012 Balance Sheets Assets 2011 Current assets Cash Accounts receivable Inventory Total Liabilities and Owners’ Equity 2011 2012 $ 11,000 27,000 75,000 $ 14,250 36,750 96,250 $ 113,000 $147,250 Current liabilities Accounts payable Notes payable 2012 $ 54,000 14,800 $ 63,750 20,500 $ 68,800 $…

Mathematics : The Basic Building Blocks Of Mathematics
991 Words  4 PagesMathematics has become one of the topics that many adults think of as a subject that is not used in their everyday life. However, if people start looking at their daily tasks, they will begin to see that mathematics is a skill that they use every day. Mathematics is used when you are making change at the store, baking, putting together a budget, and many other ways. An elementary teacher needs to be able to help children learn the basic building blocks of mathematics. In order for teachers to be…

Mathematics: Probability
3333 Words  14 Pagesmodern meaning of probability, which, in contrast, is used as a measure of the weight of empirical evidence, and is arrived at from inductive reasoning and statistical inference. A short history of Probability Theory............ The branch of mathematics known as probability theory was inspired by gambling problems. The earliest work was performed by Girolamo Cardano (15011576) an Italian mathematician, physician, and gambler. In his manual Liber de Ludo Aleae, Cardano discusses many of the basic…

Career in Finance and Mathematics
1137 Words  5 PagesCareer in Finance and Mathematics An B. Nguyen Grantham University BA550, Finance October 27, 2015 Abstract There is many job opportunity for individual with the career in finance or mathematics background. According to CareersinFinance.com, the lowest entry level related to finance start from $35K$50K annually in small firms and can reach as high as $260K$390K for large firms. The income can variable depended on the level of education and experiences. Around the finance corporate,…

HW FIN 3331
1360 Words  6 PagesHW FIN 3331 Chapter 9 9.1. Warr Corporation just paid a dividend of $1.50 a share (that is, D0 = $1.50). The dividend is expected to grow 7% a year for 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? D0 = $1.50; g13 = 7%; gn = 5%; D1 through D5 = ? D1 = D0(1 + g1) = $1.50(1.07) = $1.6050. D2 = D0(1 + g1)(1 + g2) = $1.50(1.07)2 = $1.7174. D3 = D0(1 + g1)(1 + g2)(1 + g3) = $1.50(1.07)3 = $1.8376. D4 = D0(1 + g1)(1 + g2)(1 + g3)(1…

Mathematics And Your Feelings Towards Mathematics
963 Words  4 Pages1. Describe your skills in mathematics and your feelings towards mathematics. Reflect on how your experiences may have impacted on your beliefs about you’re mathematics skills. My skills in maths are very limited. Simple addition, subtraction, some multiplication, word problems and reading tables I believe I have a good idea about. Subjects such as mixed fractions, percentages, scientific notation’s etc I struggle with. Math is a subject I actually love doing and throwing myself into learning more…

Finance Hw Ps24
1679 Words  7 PagesProblem Set #2 4. (a) Assuming that all the bonds make only annual payments, what spot rates are imbedded in these prices? First, we need to find the Discount Factors: Bond A: 〖DF〗_1*$100=$93.46 Bond B: 〖DF〗_1*$4+〖DF〗_2*$104=$94.92 Bond C: 〖DF〗_1*$8+〖DF〗_2*$8+〖DF〗_3*$108=$103.64 〖DF〗_1=93.46/100=0.9346 〖DF〗_2=((94.92(0.9346*4)))/104=0.8767 〖DF〗_3=((103.64(0.9346*8)(0.8767*8)))/108=0.8255 Since 〖 DF〗_t=1/〖(1+r_t)〗^t , we have r_t=(1/〖DF〗_t )^(1⁄t)1. Then solving for r1, r2 and…

Importance of Mathematics
2712 Words  11 PagesWhy study Mathematics? The main reason for studying mathematics to an advanced level is that it is interesting and enjoyable. People like its challenge, its clarity, and the fact that you know when you are right. The solution of a problem has an excitement and a satisfaction. You will find all these aspects in a university degree course. You should also be aware of the wide importance of Mathematics, and the way in which it is advancing at a spectacular rate. Mathematics is about pattern and structure;…

HW 1 Fundamentals of corporate finance
3112 Words  13 PagesScore: 90 1. out of 90 points (100%) award: 10 out of 10.00 points Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $143,000; patents and copyrights = $630,000; accounts payable = $220,500; accounts receivable = $115,000; tangible net fixed assets = $1,660,000; inventory = $301,000; notes payable = $120,000; accumulated retained earnings = $1,246,000; longterm debt = $861,000. (Be sure to list the accounts in order of their liquidity.) CORNELL COP. Balance…

Mathematics : Mathematics And Real Economics
1526 Words  7 PagesMathematics and Real Economics Although economics is about human interaction, economic theory is typically expressed using mathematics. Mathematics is an advanced language tool used for providing clarity, precision and correctness for economic concepts. As humans interact, mathematics is a method employed to communicate ideas clearly, provide evidence, and a method for expressing arguments. Although mathematics can be misleading, mathematics aspires to establish true and valid statements while exploring…
More about Mathematics of Finance Hw Essay

HW 2 Fundamentals of corporate finance
4171 Words  17 Pages 
Mathematics : The Basic Building Blocks Of Mathematics
991 Words  4 Pages 
Mathematics: Probability
3333 Words  14 Pages 
Career in Finance and Mathematics
1137 Words  5 Pages 
HW FIN 3331
1360 Words  6 Pages 
Mathematics And Your Feelings Towards Mathematics
963 Words  4 Pages 
Finance Hw Ps24
1679 Words  7 Pages 
Importance of Mathematics
2712 Words  11 Pages 
HW 1 Fundamentals of corporate finance
3112 Words  13 Pages 
Mathematics : Mathematics And Real Economics
1526 Words  7 Pages