Mathematics For Finance

Q1 NPV = Future payment / (1+5%)2
=14000 / 1.1025 = 12698.41
Q2 NPV = present value of cash inflow – present value of cash outflow
= 12698.41 – 10000 = 2698.41
Q3continuous compounding = P0ert = 10000 * 1.1051 = 11051
Q4 compounding times = 10000* (1+5%/24)12*2 = 10000*1.049 = 10490
Q5 11025
Q 6
16.15%
Q 7
Q8 6.59
Q9 128
Q10 83.28
Q11
A=126.73
B = 182.45
Q 12
8.63
Q 13
8.84
Q 14
0.0006
Q 15
Positive correlation exists between A and B.
Q 16
True
Q 17
<True
Q 18
1