Archive about 'Financial Mathematics'

What Is Moving Average And Is It Used And Applied?

Tweet Question: I was asked by management to use moving average method to do the cash collection forecast. Can you tell me: (a) What is moving average (b) How is it use and applied and who commonly uses it. Suggested Answer: (a)     What is Moving Average: A moving average is an average  that is being […]

What Do We Mean By Rule of 72 and Rule of 69 When Can These Rules Be Used

Tweet Question: Can you tell me what is Rule 72 and Rule 69? When can I use these Rules? Suggested Answer: (a)     What are Rule 72 & Rule 69: Rule 72 is a rule-of-thumb method used to determine how many years it takes to double in investment money. For example, using the rule of 72, […]

Cash Discount And Its Notation

Tweet I saw on my supplier invoice with a notation of “ 2/10,n/30 ” . What does this mean? Answer: Some companies offer their customers an incentive to get them to pay their bills faster. This is called a cash discount. See earlier article on the difference between cash discount and trade discount When the […]

Answer To Questions On Financial Mathematics Of Partnerships

Tweet Append below the answers to the questions on Financial Mathematics on Partnerships: ANSWERS TO QUESTION ON FINANCIAL MATHEMATICS ON PARTNERSHIPS 1. (a) Mr. A=$12,389 Mr. B=$6,111 (b) $11,100 © $63,624.00 2. Mr. A=$14,400 Mr. B=$10,800 Mr. C=$4,800 3. Profit: Mr. A=$12,000 Mr. B=$13,000 % : Mr. A=25% Mr. B=25% 4. Mr. A =$600 Mr. […]

Answers To Questions On Financial Mathematic On Depreciation

Tweet Append below the answers to questions on Financial Mathematic on depreciation based on straight line and reducing balance basis: FINANCIAL MATHEMATICS ANSWERS ON DEPRECIATION 1. $3,600 2. $2,375 3. (a) 32.55% (b) $2,415.34 4. (a) $131.53 (b) $304.83 5. 35.56% 6. (a) 15% (b) 24.21% CLICK HERE FOR ALL ARTICLES ON DEPRECIATION OF FIXED […]

Answer To Financial Mathematic Topic Of Bills Of Exchane

Tweet Append below the answers to the questions raised on Bills Of Exchange: FINANCIAL MATHEMATICS ANSWERS ON BILLS OF EXCHANGE 1. $192.80 2. (a) $76.71 (b) $3,924.73 3. (a)$9,840 (b) 6% 4. $429.65 5. $575.55 6. 4% 7. $3.06 8. $0.14

Answers On Mark Up/Down & Discount

Tweet Append below the answer to the questions on financial mathematics on Mark up/down & discount: FINANCIAL MATHEMATICS ANSWERS ON MARK UP/DOWN/DISCOUNT 1. (a) 25% (b) 18.75% 2. $10,800 3. $150 4. 26.67% 5. (a) $136.62 (b) $44.55 (c)$56 (d)33% 6. (a) $613.70 (b) $1,003.20 (c) $246 (d) $55.33 7. $32

Questions On Bill Of Exchange

Tweet Some financial mathematic questions on bills of exchange: FINANCIAL MATHEMATICS QUESTIONS ON BILLS OF EXCHANGE 1 A Bill of Exchange for $4,000 was drawn on 1 January 1980 for six months and discounted on 5 February 1980. Calculate the Banker’s Discount at 12% per annum 2 (a)    What is the Banker’s Discount on a […]

Questions On Financial Mathematics On Partnership Accounting

Tweet Some questions on Partnerships for readers to practise to enhance their knowledge on computational questions of Partnerships Accounts: FINANCIAL MATHEMATICS QUESTIONS ON PARTNERSHIPS 1 Two men, Mr A and Mr B are in partnership, Mr A having provided $80,000 capital and Mr B $100,000. They agree that in any one year Mr A shall […]

Questions On Depreciation Of Fixed Asset

Tweet Some questions for readers to practise on topic on depreciation of fixed assets based on straight-line basis and reducing or diminishing balance method:- FINANCIAL MATHEMATICS QUESTIONS ON DEPRECIATION 1 A firm bought a machine for $20,000 which is expected to be used for 5 years and then sold for $2,000. What is the annual […]