Savings – NBC Institute

BMF – Nov 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculate the amount to set aside annually to accumulate a sum for a car replacement in 5 years.

Question

How much should Mr. Eaglet set aside at the end of each year to replace his motor car in 5 years’ time if the cost of a new car remains at ₦5 million and the rate of interest stays at 7% per annum?
A. N669,349.23
B. N779,349.23
C. N869,349.23
D. N979,349.23
E. N989,349.23

Answer

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Tags: Annuities, Financial planning, Future Value, Savings
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2020

QTB – May 2017 – L1 – SB – Q3a – Mathematics

Determine the annual savings required to accumulate a future sum under annuity terms.

Question

A lawyer plans to save a certain amount of money per annum for 5 years on the first day of the year. If the interest rate is 8%, for him to receive N696,910.50, determine x. (10 Marks)

Answer

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Tags: Annuity, Interest Rate, Present Value, Savings
Level: Level 1

Topic: Mathematics
Series: MAY 2017

BMF – Mar July 2020 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

Calculating the future value of annual savings of ₦300,000 invested at 6.5% over 9 years.

Question

A savings scheme involves investing ₦300,000 per annum on the last day of the year. If the interest rate is 6.5%, what is the sum to be received at the end of 9 years?
A. ₦3,419,591.31
B. ₦3,519,692.31
C. ₦3,619,793.31
D. ₦3,659,894.31
E. ₦3,719,894.31

Answer

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Tags: Compound Interest, Future Value, Savings
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAR/JULY 2020

BMF – Mar July 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the fixed annual savings required to replace a machine in 7 years.

Question

Fattie Limited wishes to make some savings to replace an existing machine with a better model at a cost of ₦10,000,000 in 7 years’ time. Assuming that the current rate of interest is 9% per annum, what fixed annual amount must the company set aside at the end of each year to achieve its target?
A. ₦1,053,926.50
B. ₦1,064,956.50
C. ₦1,075,926.52
D. ₦1,086,956.52
E. ₦1,093,926.50

Answer

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Tags: Compound Interest, Financial planning, Savings
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAR/JULY 2020

QT – Nov 2017 – L1 – Q7a – Mathematics of Business Finance

Determine the timeline for savings and calculate the time required to reach a target amount with compound interest.

Question

Every Monday, Kwei puts GH¢30 into a savings account at the Ring Bank, which accrues interest of 6.92% per annum compounded weekly.

Required:
i) Draw a cash flow timeline showing the payments, the interest rate, and the present values for the first four payments. (3 marks)
ii) Determine how long it will take Kwei’s account to reach a balance of GH¢4,397.53. Convert your answer into the number of years and days to the nearest integer. (6 marks)
iii) Determine how much interest Kwei will receive from the bank during the period of his investment.

Answer

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Tags: Compound Interest, Present Value, Savings
Level: Level 1

Topic: Mathematics of Business Finance
Series: NOV 2017

BMF – Nov 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculate the amount to set aside annually to accumulate a sum for a car replacement in 5 years.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Annuities, Financial planning, Future Value, Savings
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2020

QTB – May 2017 – L1 – SB – Q3a – Mathematics

Determine the annual savings required to accumulate a future sum under annuity terms.

Question

A lawyer plans to save a certain amount of money per annum for 5 years on the first day of the year. If the interest rate is 8%, for him to receive N696,910.50, determine x. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Annuity, Interest Rate, Present Value, Savings
Level: Level 1

Topic: Mathematics
Series: MAY 2017

BMF – Mar July 2020 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

Calculating the future value of annual savings of ₦300,000 invested at 6.5% over 9 years.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Compound Interest, Future Value, Savings
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAR/JULY 2020

BMF – Mar July 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the fixed annual savings required to replace a machine in 7 years.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Compound Interest, Financial planning, Savings
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAR/JULY 2020

QT – Nov 2017 – L1 – Q7a – Mathematics of Business Finance

Determine the timeline for savings and calculate the time required to reach a target amount with compound interest.

Question

Every Monday, Kwei puts GH¢30 into a savings account at the Ring Bank, which accrues interest of 6.92% per annum compounded weekly.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Compound Interest, Present Value, Savings
Level: Level 1

Topic: Mathematics of Business Finance
Series: NOV 2017

Question Tag: Savings

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BMF – Nov 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculate the amount to set aside annually to accumulate a sum for a car replacement in 5 years.

QTB – May 2017 – L1 – SB – Q3a – Mathematics

Determine the annual savings required to accumulate a future sum under annuity terms.

BMF – Mar July 2020 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

Calculating the future value of annual savings of ₦300,000 invested at 6.5% over 9 years.

BMF – Mar July 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the fixed annual savings required to replace a machine in 7 years.

QT – Nov 2017 – L1 – Q7a – Mathematics of Business Finance

Determine the timeline for savings and calculate the time required to reach a target amount with compound interest.

BMF – Nov 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculate the amount to set aside annually to accumulate a sum for a car replacement in 5 years.

QTB – May 2017 – L1 – SB – Q3a – Mathematics

Determine the annual savings required to accumulate a future sum under annuity terms.

BMF – Mar July 2020 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

Calculating the future value of annual savings of ₦300,000 invested at 6.5% over 9 years.

BMF – Mar July 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the fixed annual savings required to replace a machine in 7 years.

QT – Nov 2017 – L1 – Q7a – Mathematics of Business Finance

Determine the timeline for savings and calculate the time required to reach a target amount with compound interest.

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BMF – Nov 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculate the amount to set aside annually to accumulate a sum for a car replacement in 5 years.

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QTB – May 2017 – L1 – SB – Q3a – Mathematics

Determine the annual savings required to accumulate a future sum under annuity terms.

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BMF – Mar July 2020 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

Calculating the future value of annual savings of ₦300,000 invested at 6.5% over 9 years.

You're reporting an error for "BMF – Mar July 2020 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets"

BMF – Mar July 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the fixed annual savings required to replace a machine in 7 years.

You're reporting an error for "BMF – Mar July 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets"

QT – Nov 2017 – L1 – Q7a – Mathematics of Business Finance

Determine the timeline for savings and calculate the time required to reach a target amount with compound interest.

You're reporting an error for "QT – Nov 2017 – L1 – Q7a – Mathematics of Business Finance"

BMF – Nov 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculate the amount to set aside annually to accumulate a sum for a car replacement in 5 years.

You're reporting an error for "BMF – Nov 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets"

QTB – May 2017 – L1 – SB – Q3a – Mathematics

Determine the annual savings required to accumulate a future sum under annuity terms.

You're reporting an error for "QTB – May 2017 – L1 – SB – Q3a – Mathematics"

BMF – Mar July 2020 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

Calculating the future value of annual savings of ₦300,000 invested at 6.5% over 9 years.

You're reporting an error for "BMF – Mar July 2020 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets"

BMF – Mar July 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the fixed annual savings required to replace a machine in 7 years.

You're reporting an error for "BMF – Mar July 2020 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets"

QT – Nov 2017 – L1 – Q7a – Mathematics of Business Finance

Determine the timeline for savings and calculate the time required to reach a target amount with compound interest.

You're reporting an error for "QT – Nov 2017 – L1 – Q7a – Mathematics of Business Finance"

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