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If You Can Solve This Maths, A Financial Institution Should Employ You. - Education (7) - Nairaland

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Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by deanels50: 9:05pm On Aug 15, 2015
For a year he has 2000*12 = 24000 so 12% of 24000 =28800 (add both figure) u get 52800 so he keeps 52800 every year in his bank so for 20years he would have 52800*20 which is equals to #1,056,000 hit me up on 08100581890 if am correct or on IG@cranepapi

1 Like

Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by nigerianvenom(m): 9:05pm On Aug 15, 2015
stlaibrowne:
I don't agree with the calculations above and I strongly believe the op doesn't know the answer to the question he asked I was an engineering student not accounting nor commerce but yet I believe the formula used is not appropriate.
Reason : you have to acknowledge that the investor still contribute 2000 from his salary every year till the 20th year which means the interests and principals will vary every year as the year rises so it's not possible to use a constant value for the accurate return on investment.
I have done my calculations and the answer is
#161, 397.47086406. Final answer
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by chidifyn(f): 9:06pm On Aug 15, 2015
20,000 *12/100 = 20*12= 240(interest monthly)
So d total money + interest per mth = 20,000+240= 20,240
Total for a period of 20yrs =12months * 20yrs = 240months
20,240*240mths= 4,857,600
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Weah96: 9:06pm On Aug 15, 2015
Forget the formula, it's for the young people who remember. Use common sense.

12% of 2000=240 add to the principal of N2000
12% of 2240= 268.8 add to the principal of N2240
12% of 2508.8= 301.056 add to the principal of N2508.8

Do it till you reach 20 yrs. Or use Wolfram Alpha.

The answer is [size=18pt]N19293[/size].

Modified: the above assumed N2000 was saved EVERY YEAR, not every month. For N24000 a year, the answer is [size=19pt]N231511[/size]
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by nobosaba(m): 9:06pm On Aug 15, 2015
walexy30:


Even if is 1,000 years, then it will take you a lifetime to get the answer.


You shouldn't have said that
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Nobody: 9:07pm On Aug 15, 2015
UlqU3:
N1,748,551.20.
wrong
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by haibe(m): 9:07pm On Aug 15, 2015
Answer is 19293
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Nobody: 9:08pm On Aug 15, 2015
nobosaba:


You shouldn't have said that

Sorry
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Nobody: 9:08pm On Aug 15, 2015
walexy30:


wrong
isnt this cost of equity wher derz dis long formular involving 1 divided by 1+r raise to power n....
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by haibe(m): 9:09pm On Aug 15, 2015
A (1+r)^n

2000 (1.12)^20

19.293 undecided

its a simple future value question.. No compounding, no annuity
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by youngsahito(m): 9:09pm On Aug 15, 2015
Thavybe:
The interest on each payment is compounding. e.g a deposit of 50 naira that attracts a monthly interest of 10%. will be 0.1 * 50 = #5 (interest value for the month + #50 (principal) = #55 for the first month. now if we are to calculate for the second month, the interest rate will be multiplied by #55 not the original #50.

m vry much sure dat u must be an accountant cos I did compound interest in Finanacial Management...gud explanation bro n let us tell dem dat accountant rule d world
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by xblx: 9:09pm On Aug 15, 2015
sureguy02:
The monthly interest rate is 1%

Fv = pv ((1+r)n-1)/r

Fv = 2,000[(1+0.1)240-1]/0.1

=N1,978,510.73

You are close except that you calculated for 239months. I got N2,000,295.84

By just creating an excel sheet, starting with N2000 in cell A1 and inputing '=2000 + (A1+(1%*A1))' for 240cells
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by nobosaba(m): 9:10pm On Aug 15, 2015
walexy30:


Sorry

Thank you
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Nobody: 9:10pm On Aug 15, 2015
D tin hard die, I sabi d answer, but I don't Bleep.ing know any formula to shorten it, my brain maybe powerful , but I suck in maths.


One can calculate and get 12% per year, den calculate for 20 years , same goes for 19 years, 18 years, 17 years, 16 years, in that order till the final year which is one year ...

Now the compounded profit interest for each year can be calculated separately as well.

Lmao.
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Nobody: 9:11pm On Aug 15, 2015
debbianah:
12 percent annual interest on ur savings of 2000 monthly. days 24,000 monthly. 12 percent of 24000 is 2880. so u shed get 2880 with of interest every year x 20 years is 57,600.
Thanks alot eh? but leave my money for me I no wan save again.. inugo? in short give me now, I no do oooooO
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by UlqU3(m): 9:12pm On Aug 15, 2015
walexy30:
wrong
How many times a year is the interest compounded?
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Kennedyiheme: 9:12pm On Aug 15, 2015
SarahD:
If you save 2000naira every month at 12% per year, you would have saved 24000 in the first year. Your interest for first year will be 2880naira and your money in will be 24000+2880= 26880.
In the second year, you will save an extra 24000, add it to 26880 of last yeat and your principal will be 50880. 12% of 50880 is 6105,6naira, you will now have 50880+6105.6, which gives you 56985.6 naira at the end of the second year.
In the third year, your principal will be 56985.6+another 24000 which is 80985.6naira. Then get 12% of that and you continue calculating it in that manner till you get to the 20th year.
12% interest isn't meant to be charged each year of 20yrs, but 12% interest on 480,000, the question didn't say u shld charge the interest each year
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by dayodare49o: 9:13pm On Aug 15, 2015
walexy30:


Solve it and let's see the answer
bro I am sorry I am not interested. from experience I know if i save 1000 at 10% interest for 3 years the first year balance will be 1100 naira, the second year balance will be 1110 and third year will be 1111so if I know this then formulae will be created and with it any question can be solved.
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by adanny01(m): 9:15pm On Aug 15, 2015
Interest = P (1 + r/n)^nt

P = N2000
r = 12% = 0.12
n = 1 because interest is per annum
t = 20

I = 24000 (1+0.12)^20
I = 231511.03
Savings = 2000*12*20 = 480,000
Total = Savings + Interest
Total payable after 20 yrs is [size=18pt]N711,511.03[/size]

walexy30 hope you see
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Kennedyiheme: 9:15pm On Aug 15, 2015
haibe:
lol its mathematics of finance. . There is a formular for future value:

A (1+r)^n
I'm a buisness student, there's ntin mathematics of finance in that simple question....the anser is 57600
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by chronique(m): 9:15pm On Aug 15, 2015
Annuity is 24000/yr(2000x12 months)

Annuity factor is 81.2828(approximately)

Terminal value = 24000 x 81.2828

= 1,950,787.20

Note: final answer might vary from person to person due to approximations.
walexy30:
I save N2000 every month in a bank with an annual interest rate of 12% for 20 years while still working. How much will i receive at the end of the period (20 years).
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by mfm04622: 9:15pm On Aug 15, 2015
Alcheringa:
#2000*12months: #24000 per annum savings.
#24,000*20yrs duration: #480,000 savings.
Interest I: PRT/100 : 24000*12%*20yrs : #57,600.
Thus, the total amount to be received at the end of the 20years period:
#480,000 + #57,600 :
Equal #537,600

Wrong! Since the savings is monthly, you earn interest from the first month.
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by narttis1: 9:15pm On Aug 15, 2015
This is basic financial mathematics. it's an annuity problem. The solution is as follows:

the annual payments will be 12,000×12=24,000
(1-v^n)/int
v=1÷(1.12)=0.89286
v^20=0.10367
annuity=(1-0.10367)/0.12=7.46942
24000×7.46942=#179,266.

This is a close approximation because I did not convert the interest rate to a monthly one.
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by tushwolz(m): 9:16pm On Aug 15, 2015
walexy30:
I save N2000 every month in a bank with an annual interest rate of 12% for 20 years while still working. How much will i receive at the end of the period (20 years).

U will have (N1936769.60) one million nine hundred and thirty six thousand seven hundred and sixty nine naira sixty kobo grin cool
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Nobody: 9:17pm On Aug 15, 2015
gt
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by baloney: 9:19pm On Aug 15, 2015
FV of 2000 in each month for
20years at 12% interest is #537,600.
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by David0(m): 9:19pm On Aug 15, 2015
walexy30:
I save N2000 every month in a bank with an annual interest rate of 12% for 20 years while still working. How much will i receive at the end of the period (20 years).

N1,152,000
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by Nobody: 9:19pm On Aug 15, 2015
The answer is 481893
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by haibe(m): 9:19pm On Aug 15, 2015
Kennedyiheme:
I'm a buisness student, there's ntin mathematics of finance in that simple question....the anser is 57600
lol.. its mathematics of finance dude.. that doesn't mean u cant use the simple complicated methods u get in primary school. . But it is a question whereby we want to know the yield of our investment today in 20 years given a 12% interest rate.. you get this with a simple future value of annuity formula... lol;
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by gbaskiboy: 9:20pm On Aug 15, 2015
walexy30:

wrong
57600, that is what I got too
Re: If You Can Solve This Maths, A Financial Institution Should Employ You. by futurewise11(m): 9:20pm On Aug 15, 2015
this is business mathematics first semester exam question.future value of annuity.expect the answer soon...

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