Showing posts with label financial mathematics. Show all posts
Showing posts with label financial mathematics. Show all posts

Compound Involvement Inward Mathematics

Compound involvement is an involvement that has been added to the base of operations coin at the halt of each involvement payment catamenia which is in addition to hence used every bit the footing for determining the involvement charge per unit of measurement inwards the adjacent period.

For to a greater extent than details, delight run across the next illustration:
If X keeps the coin inwards the banking concern in addition to hence at the halt of each period, the involvement earned is non taken, in addition to hence the involvement volition endure together upper-case alphabetic lineament into novel upper-case alphabetic lineament that volition blossom inwards the adjacent period. The involvement earned is greater than the involvement on the previous period. The procedure inwards the inwards a higher house example is called amongst chemical compound interest.

Example of chemical compound interest

Pajar saves coin inwards the banking concern $1,000,000 in addition to the banking concern gives 10% involvement / year. If involvement is never taken in addition to considered no banking concern management fee. Please Determine the total of involvement earned Pajar afterward the upper-case alphabetic lineament settles for 3 years!

Answer:
The halt of the get-go twelvemonth of involvement earned (I) is:
I = involvement x capital
I = 10% x $1,000,000
I = $100,000

Beginning of the instant year, upper-case alphabetic lineament becomes (C2):
C2 = C + I
C2 = $1,000,000 + $100,000
C2 = $1,100,000

End of instant year, involvement earned (I2) =
B2 = i x C2
B2 = 10% x $1,100,000
B2 = $110,000

Beginning of the 3rd year, upper-case alphabetic lineament becomes (C3):
C3 = C2 + B2
C3 = $1,100,000 + $110,000
C3 = $1,210,000

At the halt of the 3rd year, the involvement earned becomes (I3):
B3 = i x C3
B3 = 10% x C3
B3 = 10% x $1,210,000
B3 = $121,000

So the total of involvement earned afterward settling for iii years is 100,000 + $110,000 + $121,000 = $331,000.

Similarly this article.
Sorry if at that spot is a incorrect word.
The halt of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting in addition to sales

Final Value Of Chemical Compound Interest

The lastly value of chemical compound involvement is a uppercase value later beingness levied for a for certain period.

Formula of Final Value of Compound Interest

Cn = C(1 + i)n

Information :
Cn = Capital to the catamenia n
C = Capital
i = per centum of involvement per period

Example of the lastly value of chemical compound interest

Capital of $5,000,000 is charged amongst 10%/year chemical compound interest. Please Specify lastly uppercase in addition to involvement earned for half dozen years!

Answer:
C = $5,000,000
i = 10%/year
n = 6years

Cn = C(1 + i)n
C6 = $5,000,000(1 + 10%)6
C6 = $5,000,000 x 1.771561
C6 = $8,857,805

Interest = $8,857,805 - $5,000,000
Interest = $3,857,805

So the lastly uppercase is $8,857,805 in addition to the involvement is $3,857,805 earned for half dozen years.

Similarly this article.
Sorry if at that topographic point is a incorrect word.
The halt of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's majority math grouping accounting in addition to sales

The Concluding Value Of Chemical Compound Involvement Amongst The Fractional Interest

The length of the flaring procedure of a upper-case missive of the alphabet is non merely an integer.

Formula of Final Value of Compound Interest With Fractional interest

Cn = C(1 + i)m (1 + p.i)

Information :
Cn = Capital inwards current n
C = Initial upper-case missive of the alphabet period
p = Fractional period
i = Percentage of interest
m = Value of grappler from fractional period

Example of the Final Value of Compound Interest amongst the Fractional interest

Capital of $4,500,000 is levied amongst 3%/month chemical compound involvement rate. Please cause upward one's heed the lastly upper-case missive of the alphabet afterwards flowering for 5.75 months!

Answer:
C = $ 4,500,000
i = 3% / calendar month = 0.03 / month
n = 5.75 months
m = five months
p = 5.75 - five = 0.75

Cn = C(1 + i)m (1 + p.i)
C5.75 = 4,500,000(1 + 0.03)5 (1 + (0.75).(0.03))
C5.75 = 4,500,000(1.03)5 (1.0225)
C5.75 = 5,334,109.83

So the lastly upper-case missive of the alphabet afterwards flowering for 5.75 months is $5,334,109.83.

Similarly this article.
Sorry if at that topographic point is a incorrect word.
The terminate of discussion wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting as well as sales

The Cash Value Of Chemical Compound Interest

If n menstruation someone has to repay his loan of C alongside the calculation of involvement charge per unit of measurement i%/period too it turns out that someone is able to pay off his debt now, too thus it tin live said that the someone pay past times cash.

Formula of the cash value of chemical compound interest



Information :
CV = Cash Value
C = First capital
i = per centum of interest
n = period

The Problems illustration of the cash value of chemical compound interest

Determine the starting fourth dimension upper-case missive of the alphabet if the lastly value of the capital $17,262,804.24 afterwards the involvement charge per unit of measurement for iv years ix months alongside an involvement charge per unit of measurement of 8%/quarter!

Answer:
C = $ 17,262,804.24
i = 8% / kartal = 0.08 / quarter
n = iv years ix months = nineteen quarter



So the starting fourth dimension upper-case missive of the alphabet is $4,000,000.

Similarly this article.
Sorry if in that place is a incorrect word.
The halt of discussion wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting too sales

The Cash Value Of Chemical Compound Involvement Amongst The Fractional Interest

For compounded involvement cash value having a fractional involvement is hard to create when done amongst the formula of the cash value of chemical compound involvement amongst non-fraction interest.

Formula The cash value of chemical compound involvement amongst the fractional interest



Information :
CV = Cash value
C = Initial capital
i = per centum of involvement per period
n = menstruum circular menstruum value
p = value of fractional period

An illustration enquiry of a chemical compound involvement charge per unit of measurement amongst a fractional interest

Determine the cash value later flowering for 6.5 months. Capital to $3,500,000 if levied amongst a 3%/month chemical compound involvement rate!

Answer:
C = $3,500,000
i = 3%/month = 0.03/month
n = 6
p = 0.5


So the cash value is $2,887,876.75.

Definition As Well As Types Of Rente

Definition of rente

Suppose you lot proceed a certainly amount of coin each calendar month at the same bank, in addition to the banking concern gives you lot involvement on your savings. After a few months you lot volition count the amount of savings that get got been stored. If banks create non accuse administrative fees, tin you lot calculate the full amount of your savings? Well to calculate the savings from the instance it takes cognition most rente.

Rente is a serial of upper-case missive of the alphabet or installment paid or received at whatsoever given fixed menstruation of time.

Types of Rente

In essence in that place are iii types of rent, such every bit :

a. Rente based on installment payment, consists of:

  • Rente Pra Numerando is rente that is paid or received at the commencement of the period.
  • Rente Post Numerando is a rent that is paid or received at the halt of the period.

b. Rente based on the set out of installments, consists of:

  • Limited rente is rente whose set out of installments is limited.
  • Eternal rente is rente whose total of unlimited installments.

c. Rente based on whether or non the firstly payment, consists of:

  • Directly rente is rente whose firstly payment is straight every bit per agreement
  • Suspended Rente is rente whose firstly payment is deferred for several periods.

Similarly this article.
Sorry if in that place is a incorrect word.
The halt of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting in addition to sales

Final Value Of Rente Pra Numerando

Rente pranumerando is an empowered rent at the outset of the period, as well as then the concluding installment has undergone a one-period development.

Formula of Rente Pra Numerando


Keterangan :
FS = Final Value
C = First uppercase period
i = Percentage of involvement per period
n = Period period

Example Question of Rente Pra Numerando


Every outset of the yr Nisa saves coin at ABC Bank for $1,000,000. If the banking corporation gives 6%interest/year, decide the coin Nisa afterwards saving twenty years!

Answer:
C = $1,000,000
i = 6%/year = 0.06/year
n = 20years



So Nisa's coin afterwards saving twenty years is $38,992,726.68.

Similarly this article.
Sorry if at that topographic point is a incorrect word.
The halt of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's majority math grouping accounting as well as sales

Cash Value Of Rente Pra Numerando

The value of rente pranumerando is the total of all installment cash values calculated at the get-go of the firstly involvement period.


Cash Value Formula of Rente Pra Numerando


Information :
CV = Cash value
C = First majuscule at the period
i = Percentage of involvement per period
n = Period period

Example of Cash Value of Rente Pra Numerando

Influenza A virus subtype H5N1 educatee volition become a scholarship at the get-go of every calendar month from PT UNILEVER for $250,000 for 3years. If the gift volition move granted at the get-go of the firstly calendar month at 2%/month interest, delight specify the amount of the scholarship full received yesteryear the student!

Answer:
C = $250,000
i = 2%/month = 0.02/month
n = 3years = 26months


So the full scholarship received yesteryear the students is $6,499,654.83

Similarly this article.
Sorry if in that place is a incorrect word.
The cease of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's majority math grouping accounting too sales

Final Value Of Rente Ship Service Numerando

Rente post service numerando is the rent paid at the terminate of the period, as well as then the lastly installment is non dependent plain to interest.

Formula of Rente Post Numerando


Information :
FS = Final Value
C = Capital at the get-go of the period
i = Percentage of involvement per period
n = Period period

Example Question of Rente Post Numerando


At the terminate of each twelvemonth my virile someone nurture kept his coin inwards the ABC depository fiscal establishment for $800,000 for 25 years. If the depository fiscal establishment earns 5% interest/years, produce upwards one's heed the full total of Dad's deposits!

Answer:
C = $800,000
i = 5%/year = 0.05/year
n = 25 years



So the full total of Father's savings is $38,181,679.05.

Similarly this article.
Sorry if at that spot is a incorrect word.
The terminate of discussion wassalamualaikum wr. wb

Referensi :
  • To'Ali's majority math grouping accounting as well as sales

Cash Value Of Rente Postal Service Numerando

The value of rente postal service numerando is the amount of all installment cash values calculated at the destination of the involvement period.

Cash Value Formula of Rente Post Numerando


Information :
CV = Cash value
C = Initial majuscule period
i = per centum of involvement per period
n = menstruum period

Example Question of Cash Value of Rente Post Numerando

Each destination of the calendar month Cinta Damai foundation earned donations from the World Peace Agency of $5,000,000 for iii consecutive years. If the donation volition last awarded at the same fourth dimension as well as discipline to involvement of 2%/month, delight decide the full donation received yesteryear the foundation!

Answer:
C = $ 5,000,000
i = 2% / calendar month = 0.02 / month
n = iii years = 36 months


So the full donation received yesteryear the foundation is $127,444,212.41.

Similarly this article.
Sorry if at that spot is a incorrect word.
The destination of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting as well as sales

Cash Value Of Eternal Rente Pranumerando

Eternal Rente is rente whose amount of unlimited installments. The value of the eternal rent is a geometric progression down, in addition to thus the value of the eternal rent of cash has value.


Cash Value Formula of Eternal Rente Pranumerando


Information :
CV = Cash value
C = Initial majuscule period
i = Percentage of involvement per period

Example Question of Cash Value of Eternal Rente Pranumerando

At the commencement of each month, Fulan volition earn a $175,000 scholarship from PT UNILEVER for a express menstruum of time. PT UNILEVER does non desire to bother. Therefore, the scholarship volition live on awarded at the same fourth dimension simply dependent area to involvement of 1%/month. Determine the full scholarship Fulan received!

Answer:
C = $175,000
i = 1%/month = 0.01/month



So the full scholarship received past times Fulan is $17,675,000.00.

Similarly this article.
Sorry if in that place is a incorrect word.
The halt of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting in addition to sales

Cash Value Of Eternal Rente Postal Service Numerando

Eternal Rente is rente whose total of unlimited installments. The value of the eternal rent is a geometric progression down, then the value of the eternal rent of cash has value.

Cash Value Formula of Eternal Rente Post Numerando


Keterangan :
CV = Cash value
C = Initial working capital missive of the alphabet period
i = percent of involvement per period

Example Question of Cash Value of Eternal Rente Post Numerando

Every in conclusion yr x foundation volition larn donations from the World Bank for $3,500,000 for an indefinite period. If the World Bank volition brand a donation at a charge per unit of measurement of 17.5%/year. Please decide the full donation received yesteryear the x foundation!

Answer:
C = $3,500,000
i = 17.5%/year = 0.175/year


So the full donation received yesteryear the x foundation is $20,000,000.

Similarly this article.
Sorry if in that place is a incorrect word.
The halt of discussion wassalamualaikum wr. wb

Referensi :
  • To'Ali's majority math grouping accounting as well as sales

Annuity Of Bond Loan

Bonds are securities which are written loan agreements. These bonds are unremarkably used to obtain large loan amounts. In bonds at that spot are the engagement of expenditure, nominal value, involvement rate, unloose in addition to emission value. If the bond loan is repaid amongst an annuity organization or an annuity loan volition live on repaid amongst the bond, the nominal value of the bond volition live on broken downwards into a smaller par value, eg $10,000,000 bond loan broken to $ 10,000 resulting inwards the total of bonds existence 1,000.

If the repayment total is non a multiple of the nominal denomination of the bond, the remaining non-multiplier volition live on paid inwards the side past times side annuity.

The agency for to calcululate Annuity of Bond Loan

To decide the total of installment tin forcefulness out live on calculated inwards the next way:


Example Question of Annuity of Bond Loan

H5N1 $ 12,000,000 bond loan dissever into 1,200 bonds of $ 10,000 each volition live on repaid on a yearly annuity amongst an involvement charge per unit of measurement of 10% / yr for v years. Please specify the payout excogitation table!

Answer:
C = $ 12,000,000
i = 10% / yr = 0.1 / year
n = v years

Anuity value
The value of the annuity is:

The repayment plan
The repayment excogitation is every bit follows:





Installment table
The installment tabular array is every bit follows:
Similarly this article.
Sorry if at that spot is a incorrect word.
The destination of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's majority math grouping accounting in addition to sales

Annuity Repayment Table

To illustrate the loan to the repayment plan, an annuity repayment tabular array is normally used. Usually the annuity listed inwards the tabular array is a rounding annuity.

The Formula of Annuity


Information:
A = Annuity
C = Initial mode
i = Percentage of involvement per period
n = Period

Example Question of Annuity Repayment Table

Influenza A virus subtype H5N1 $10,000,000 loan is repaid amongst an annual annuity at an involvement charge per unit of measurement of 12% / yr for 8 years. If the annuity payment is rounded upwards inwards the hundreds of thousands, specify:
a. The sum of an annuity earlier as well as afterwards is rounded
b. Table of annuity repayment plan
c. Payment of final annuity

Answer:
C = $10,000,000
i = 12%/year = 0.12/year
n = 8 years

a. The sum of annuity

So when rounded upwards inwards the hundreds of thousands, as well as hence the annuity is $2,100,000.

b. Table of annuity repayment plan 


Information :
Loan at the kickoff of twelvemonth ii = loan remainder at the cease of twelvemonth 1
Loan at the kickoff of the third twelvemonth = the remaining loan at the cease of twelvemonth 2, as well as hence on
Interest + installment of each course of report = annuity of rounding results upward, except the cease row (row 8)
Remaining loan at the cease of twelvemonth ane = loan kickoff 1st twelvemonth - 1st installment
Remaining minute twelvemonth cease loan = loan kickoff sec twelvemonth - sec installment, as well as hence on.
Last installment = loan at the kickoff of the final year.
C. Payment of the final annuity
$110,386.73 + $919,886.44 = $1,030,276,17.
Similarly this article.
Sorry if at that topographic point is a incorrect word.
The cease of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting as well as sales

Remaining Loan Annuity

At a glance, the ease of a loan is slow to calculate if the remaining loan is previously known. But what if nosotros desire to calculate the residuum of a loan simply the ease of the previous loan is unknown?

Formula of Remaining Loan Annuity


Information :
Sm = Remaining Loan at menstruum m
Im = Residual involvement at menstruum m
i = per centum of involvement per period

Example Question of Remaining Loan Annuity

Influenza A virus subtype H5N1 loan of $10,000,000 volition last repaid amongst a monthly annuity organization amongst an involvement charge per unit of measurement of 3%/month for 2.5 years as well as the annuity is $510,192.59. Please specify the remaining loan afterwards repayment for x months!

Answer :
i = 3%/month = 0.03/month

Determine stimulate down involvement first:
$10,000,000 x 0.03 = $300,000

So the stimulate down involvement is $ 300,000

Determine the stimulate down installment:
$510,192.59 - $300,000 = $210,192,59

Determine the 11th installment amongst the installment formula:
a11 = $210,192.59(1 + 0.03)11-1
a11 = $210,192.59(1,03)10
a11 = $210,192.59 x 1.3439164
a11 = $282,481.26

Determine the 11th interest:
I11 = $510,192.59 - $282,481.26
I11 = $227,711.33


So the ease of the loan afterwards repayment for x months is 7,590,377.67.
Similarly this article.
Sorry if in that place is a incorrect word.
The destination of discussion wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting as well as sales

Annuity Value

An annuity is an total of loan repayment of an equal total paid out over a menses of time, in addition to consists of the involvement in addition to the installment.

Formula of Annuity Value


Information :
A = Annuity
C = First capital
i = Percentage of involvement per period
n = Period

Example Question of Formula of Annuity Value

Determine the annuity value of a loan of $ 5,000,000 over 2years alongside a 2%/month involvement rate!

Answer :
C = $ 5,000,000
n = ii years = 24 months
i = 2% / calendar month = 0.02 / month


So the annuity value of a loan of $ 5,000,000 over ii years alongside a 2%/month involvement charge per unit of measurement is $ 264,355.49.

Similarly this article.
Sorry if at that topographic point is a incorrect word.
The terminate of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting in addition to sales

Annuity Of Fiscal Mathematics

Have y'all calculated your ain installment to endure paid every calendar month if y'all volition purchase the describe solid yesteryear means of installment? If y'all ever, tin y'all calculate the balance of your loan, if it has been repaid for n years from the payment of the describe solid that y'all are installing? That's the form of matter that's discussed inwards annuities.

Defenition of Annuity

An annuity is an sum of loan repayment of an equal sum paid out over a stream of time, in addition to consists of the involvement in addition to the installment.

Formula of  Anuitas

A = an + bn
an = a1(1 + i)n atau an = ak(1 + i)n - k

Information :
A = Annuity
an = The nth installment
bn = The nth interest
ak = The kth installment

Example Question of Anuitas


H5N1 loan volition endure repaid on a yearly annuity. Please own upwards one's need heed the magnitude of the annuity if the sixth installment in addition to the sixth involvement are $ 215,000 in addition to $ 85,000!

Answer :
a6 = $215,000
b6 = $85,000

A = an + bn
A = a6 + b6
A = $215,000 + $85,000
A = $400,000

So the annuity value is $ 400,000.

Similarly this article.
Sorry if in that place is a incorrect word.
The goal of give-and-take wassalamualaikum wr. wb

Referensi :
  • To'Ali's mass math grouping accounting in addition to sales

Depreciation Method Of Working Hours Unit Of Measurement Assets

The sum of depreciation using the unit of measurement method of working hours of assets is calculated based on each unit of measurement of working hours of its assets.

Formula of Depreciation Method of Working Hours Unit Assets


Information :
A = Cost of assets is the sum of costs incurred past times the society to laid about an activation until the property is cook to hold upward operated.
S = Estimated residue value of the property is the value of the appraisal that may hold upward obtained through the assets that convey passed its life.
SK = Book value at the halt of twelvemonth K
r = Depreciation charge per unit of measurement or per centum depreciation
Q = Number of working hours
D = Depreciation expense for each period

Example Question of Depreciation Method of Working Hours Unit Assets

An property at a toll of $ 30,000,000. It is estimated that the useful life of the assets for vii years amongst the functioning of the auto for 40,000 hours in addition to has a residue value of $ 6,000,000. Please specify the depreciation of each asset's workflow!

Answer:
A = $ 30,000,000
n = vii years
Q = 40,000 hours
S = $ 6,000,000


So the depreciation of each working hr of the assets is $ 600 per hour.

Similarly this article.
Sorry if at that spot is a incorrect word.
The halt of discussion wassalamualaikum wr. wb

Referensi :
  • To'Ali's majority math grouping accounting in addition to sales