Mathematical finance
Select the correct verb of the description. To spend the money that a business has earned on improving that business.
To receive profits equal to the initial outlay of an investment.
Present or propose something, especially an amount of money.
Withdraw from an undertaking.
Spend money on a business or other piece of work.
For the nexts questions read carefully the following statement: In 6 months $130 is the value of an initial investment of $100 that was deposited in a bank that offered an interest rate of 5% per month. Which is the principal of the previous statement?
5
6
130
100
5%
In 6 months $130 is the value of an initial investment of $100 that was deposited in a bank that offered an interest rate of 5% per month. Which is the Total Accrued Amount of the previous statement?
5%
80%
100
130
6
In 6 months $130 is the value of an initial investment of $100 that was deposited in a bank that offered an interest rate of 5% per month. Is 5% the IRR of the previous statement?
Yes
No
I don't know
If after the 6 months investment the bank puts in an offer to plough back the $100 without the $30 of interest, that offer would be?
Compound interest
Simple interest
Rejected
Mathematical finance helps us to
Lose money
Cheat on banks
Evade taxes
Calculate the value of money over time (past, present, future)
Calculate the value of money in the future only
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