Mathematics of Finance Hw Essay - 735 Words

Mathematics of finance 1- Prove which of the following options is the most interesting one: a) To invest 5,000â‚ ¬ in a bank account that offers an annual simple interest rate of 6%, for 10 months b) To invest 5,000â‚ ¬ 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 5,000â‚ ¬ in a bank account that offers an annual simple interest rate of 6%, for 1 year b) To invest 5,000â‚ ¬ 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†¦The bank pays interests once per month. 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: 8- Today I’ll invest 5,000â‚ ¬ 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 100,000â‚ ¬ 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 100,000â‚ ¬ 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 100,000â‚ ¬ 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 100,000â‚ ¬ 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 25,000â‚ ¬ to be paid after 90 days. But you need cashShow MoreRelatedHsc General Math Textbook with Answers153542 Words   |  615 PagesWitte Typeset by Aptara Corp. Printed in China by Printplus Limited. National Library of Australia Cataloguing in Publication data Powers, G. K. (Gregory K.) Cambridge HSC general mathematics / G. K. Powers. 9780521138345 (pbk.) Cambridge general mathematics. For secondary school age. Mathematics–Textbooks. Mathematics–Problems, exercises, etc. 510 ISBN 978-0-521-13834-5 Paperback Reproduction and Communication for educational purposes The Australian Copyright Act 1968 (the Act) allows a maximumRead MoreGlobalization Sample Questions7882 Words   |  32 Pages c. Columbia d. Belize 12. Which of the following US Presidents is most closely associated with the beginning of the era of â€Å"neo-liberalism† or â€Å"transnational liberalism?† a. Gerald Ford b. George W Bush (Jr) c. George HW Bush (Sr) d. Ronald Reagan 13. What is the process in which the traditional capitals and regional cities of countries in Asia, Africa, and the ‘Middle East,’ were threatened and changed by a powerful external force (mainly in the 17th to 20thRead MoreMonte Carlo Simulation218872 Words   |  876 Pagesengineering, researchers interested in the application of Monte Carlo methods in ï ¬ nance, and practitioners implementing models in industry. This book has grown out of lecture notes I have used over several years at Columbia, for a semester at Princeton, and for a short course at Aarhus University. These classes have been attended by masters and doctoral students in engineering, the mathematical and physical sciences, and ï ¬ nance. The selection of topics has also been inï ¬â€šuenced by my experiences in developing