begin on the second week i.e. the week of September 17. Albert Ku (HKUST) MATH 1003 6 / 18 Mathematics of Finance Mathematics of Finance In this course‚ we plan to cover the following: Simple Interest Compound Interest Future Value of an
Premium Time value of money Interest Future value
at the end of 5 years? Find the compound amount if P17‚500 is invested at 9.2% compounded semi-annually for 3.5 years. Determine the present value of P150‚000 due in 6 years if the interest rate is 5.5% compounded annually. If P135‚650 is the maturity value of a sum invested at 13.2% compounded semi-annually or 9 years and 6 months‚ find the present value and the compound interest earned. For P97‚500 to grow to P216‚000 in 14 years‚ at what interest rate converted quarterly should it be invested
Premium Money Compound interest Time
All CFA Institute members and candidates are required to comply with the Code and Standards The CFA Institute Bylaws Basic structure for enforcing the Code and Standards primary principles Based on two Rules of Procedure Fair process to member and candidate Confidentiality of proceedings Maintains oversight and responsibility The CFA Institute Board of Governors Structure of the CFA Institute Professional Conduct Program Professional Conduct program (PCP) The CFA Designated Officer Through
Premium Bond Bonds Time value of money
is the application of economic techniques to the evaluation of design and engineering alternatives.1 The role of engineering economics is to assess the appropriateness of a given project‚ estimate its value‚ and justify it from an engineering standpoint. This chapter discusses the time value of money and other cash-flow concepts‚ such as compound and continuous interest. It continues with economic practices and techniques used to evaluate and optimize decisions on selection of fire safety strategies
Premium Net present value Compound interest Time value of money
THE TIME VALUE OF MONEY by Richard A. DeFusco‚ CFA‚ Dennis W. McLeavey‚ CFA‚ Jerald E. Pinto‚ CFA‚ and David E. Runkle‚ CFA LEARNING OUTCOMES INTRODUCTION 1 As individuals‚ we often face decisions that involve saving money for a future use‚ or borrowing money for current consumption. We then need to determine the amount we need to invest‚ if we are saving‚ or the cost of borrowing‚ if we are shopping for a loan. As investment analysts‚ much of our work also involves evaluating transactions
Premium Compound interest Rate of return Time value of money
purchasing the item‚ then a lease is the best option. Leases can be classified as short term or long-term debt just depending on the amount of time contracted. The key considerations a company must consider when trying to decided whether to purchase or lease an asset is the net present value of purchasing versus leasing. The factors that affect the value are depreciation‚ taxes‚ length of
Premium Lease Investment Finance lease
you created it from the bank’s perspective? 0 1 2 3 4 5 4000 –1000 –1000 –1000 –1000 –1000 From the bank’s perspective‚ the timeline is the same except all the signs are reversed. 4-3. Calculate the future value of $2000 in a. Five years at an interest rate of 5% per year. b. Ten years at an interest rate of 5% per year. c. Five years at an interest rate of 10% per year. d. Why is the amount of interest earned in part (a) less than half
Premium Time value of money Money
you lend me $100‚000 today‚ I promise to pay you back in twenty-five annual installments of $5‚000‚ starting five years from today (that is‚ my first payment to you is five years from today). You can earn 6% on your investments. Will you lend me the money? 0. This is a deferred annuity problem CF = $5‚000 N = 25 i = 6% PV4 = $5‚000 (PV annuity factor for N=25 and i=6%) PV4 = $5‚000 (12.7834) PV4 = $63‚916.78 PV0 =
Premium Future Time Money
All the bonds in a particular issue may mature at the same time (term bonds) or in installments over a period of time (serial bonds). Serial bonds are like installment notes payable. Some of Southwest Airlines long-term debts are serial in nature because they are payable in installments. Secured‚ or mortgage‚ bonds give the bondholder the right to take specified assets of the issuer if the company defaults that is‚ fails to pay interest or principal. Unsecured bonds‚ called debentures‚ are backed
Premium Bond Money Finance
Chapter 6 The Time Value of Money-Annuities and Other Topics 6.1 Annuities 1) You wish to borrow $2‚000 to be repaid in 12 monthly installments of $189.12. The annual interest rate is: A) 24%. B) 8%. C) 18%. D) 12%. 2) If you have $20‚000 in an account earning 8% annually‚ what constant amount could you withdraw each year and have nothing remaining at the end of five years? A) $3‚525.62 B) $5‚008.76 C) $3‚408.88 D) $2‚465. 3) If you invest $750 every six months at 8% compounded semi-annually
Premium Net present value Time value of money Investment