# Finance

1. A payment stream consists of three payments: \$1,000 due today, \$16,00 due in 90 days from today, and
\$2,100 due 220 days from today. What single payment, 70 days from today, is economically equivalent to the
payment stream if money can be invested at a rate of 3.6% (use 365 days a year. do not round intermediate
calculations and round your final answer to 2 decimal places.)
What is a single payment? \$
2.A \$2,300 loan at 6.8% was repaid by two equal payments made 45 days and 90 days after the date of the
loan. Determine the amount of each payment. Use the loan date as the focal date. (use 365 days a year. do
not round intermediate calculations and round your final answer to 2 decimal places.)
What is the loan payment? \$
3.To settle a \$650 invoice, Anna can pay \$640 now or the full amount 45 days later.
a.Which alternative should she choose if money can earn 11 3/4%? (choose one)
-pay \$640 now
-pay full amount 45 days later
b. What rate would the money have to earn for Anna to be indifferent between the alternatives? (use 365 days a
year. don not round intermediate calculations and round your final answer to 2 decimal places.)
4.Payments of \$2,800, due 50 days ago, and \$3,300, due in 40 days, are to be replaced by payments of
\$3,200 due today and the balance due in 30 days. What must the second payment be if the payee is to end up
in an equivalent financial position? Money now earns 8.35%. Use 30 days as the focal point. (use 365 days a
year. don not round intermediate calculations and round your final answer to 2 decimal places.)
What is the second payment? \$
5. A payment of \$910 scheduled to be paid today and the second payment of \$1,200 to be paid in nine months
from today are to be replaced by a single equivalent payment. What total payment made today would place the
payee in the same financial position as the scheduled payments if money can earn 21/4%? (Do not round
intermediate calculations and round your final answer to 2 decimal places)
What is the equivalent payment? \$
6. What was the principal amount of a loan at 11 1/2% if the total amount owed after 24 days was \$795.97? (Do
not round intermediate calculations and round your final answer to the nearest whole dollar.)
What is the loan principal? \$
7. The balance after 11 months, including interest, on a loan at 9.7% is \$17,531.56. What are the principal and
interest components of the balance? (Do not round intermediate calculations and round your final answers to 2
decimal places.)
What is the principal component? \$
What is the interest component? \$
8. a \$100,000 investment earned a 5.4% rate of simple interest from December 3, 2019, to May 16, 2020.
How much interest was earned? (Do not round intermediate calculations and round your final answer to 2
decimal places.)
What is the interest earned? \$
9. Janesh has savings of \$11,324.87. If he can invest this amount to earn 2.8%, how many days will it take for
the investment to grow to \$11,500? Also, calculate the interest earned for this investment. (Do not round
intermediate calculations. Round “Number of days” UP to the next whole day. Round “Interest earned” to 2
decimal points.)
What is the number of days?
What is the interest earned? \$
10. What amount paid on September 5 is equivalent to \$2,500 paid on the following December 1 if money can
earn 6.5%? (use 365 days a year. do not round intermediate calculations and round your final answer to 2
decimal places.)
What is the equivalent value? \$

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