Business Finance: Answers to 10 Questions

Running head: BUSINESS FINANCE
Business Finance
Name of the Student:
Name of the University:
Author’s Note:

2BUSINESS FINANCE
Table of Contents
Answer to Question 1:................................................................................................................3
Answer to Question 2:................................................................................................................3
Answer to Question 3:................................................................................................................3
Answer to Question 4:................................................................................................................4
Answer to Question 5:................................................................................................................4
Answer to Question 6:................................................................................................................4
Answer to Question 7:................................................................................................................5
Answer to Question 8:................................................................................................................5
Answer to Question 9:................................................................................................................6
Answer to Question 10:..............................................................................................................6
Bibliography:..............................................................................................................................7

3BUSINESS FINANCE
Answer to Question 1:
Particulars Amount
Compounding Periods A 12
Interest Rate B 7%
Nominal Interest Rate
C= Ax[(1+B)^(1/A) -
1] 6.78%
Answer to Question 2:
Particulars Amount
Opening Date A 19-07-2018
Closing Date B 05-03-2019
Nos. of Days C=B-A 229
Investment Amount D $ 10,400.00
Simple Interest Rate E 6%
Present Value F=Dx[1/(1+E)x(365/C)] $ 10,022.71
Answer to Question 3:
Particulars Amount
Periodic Payment A $ 900.00
Interest Rate p.a. B 10.60%
Nos. of Payments p.a. C 2
Total Period D 9
Half Yearly Interest Rate E=B/C 5.30%
Total nos. of Payments F=CxD 18
Present Value of Investment
G=Ax[1-(1+E)^-
F]/E $ 10,278.34