Seminar calculations and answers Computational Methods for Finance

Question 1
PV 5000
r 0.06
n 3 Annual
m 4 3 months

Simple Interest (FV) a) 5900
Compound Interest (FV) b) 5955.08

Quarterly Compound Interest (FV) 5978.091




Question 2 Example
C 2000 C
r 0.07 r
n 5 n
Ordinary Annuity (PV) 8200.395 4212.364

Question 3
C 1500
r 0.06
n 4
Annuity Due (PV) 5509.518

Question 4
C 120
r 0.04
Perpetuity (PV) 3000

Question 5
PV 2500
r 0.08
n 5
Continous Compounding Interest (FV) 3729.562


Question 6
FV 5000
r 0.07
n 4
Continuous Compounding Interest (PV) 3778.919