1. Calculate the forward deposit rate, that they can agree on with the financial institution. 2. Three month later the rate on 3 month saving turn out to be 5.1% I. What do we call this rate II. How much did the company profit /loss
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- A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank? A. 8.16% B. 9.79% C. 6.53% D. 16.32%AsapTime. Deposit borrowing Rate. Rate 3 month. 4%. 4.2 6 month. 4.60%. 4.9 9 month. 5.2. 5.4 12 month. 5.5. 5.8 An MNC company would deposit $45mil in 3 month for 3 month . The company decide to enter FRA Agreement Part 1: 1. Calculate the forward deposit rate, that they can agree on with the financial institution. 2. Three month later the rate on 3 month saving turn out to be 5.1% I. What do we call this rate II. How much did the company profit /loss Part two: suppose the company decide to buy a EuroDollar cont 1. What is the Eurodollar contrace? How many contract should MNC buy? Explain 2. What is the quoted price of this contract? 3. What is the quoted price of this contract after 3 month ? 4. How many pips (base point) did the rate move? 5. How much is the profit or the loss of the company ?
- I7 The bank is offering to sell 6-month certificates of deposit for $9800. At the end of 6 months, the bank will pay $10,000 to the certificate owner. Compute the nominal annual interest rate can you explain how we get the value m=2 in the nominal annual interest rate i=r/m6. A loan of $2500 is taken out on May 12. It is to be paid back within a 1-year period with partial payments of $1000 on August 26, $40 on November 19, and $350 on January 9. If the rate of interest is 8%, what is the final balance due on March 20 by the Declining Balance Method? By the Merchant's Rule? Discount Dat-A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank? A. 8.16% Your answer is correct. B. 9.79% C. 6.53% D. 16.32%
- A bank charges an interest rate of interest is 6% compounded annually. A customer takes a loan of $159,348.29, which is to be paid back by annual payments of $18,000 at the end of each year for 13 years. What is the outstanding balance of the loan after the 2nd year? a. $141,963.74 b. $20,224.80 c. $37,080.00 d. $123,348.29 e. $33,001.07Use the United States Rule and/or the Banker's Rule to determine the balance due on the loan at the date of maturity. The effective date is the date the loan was written. A day counting table may be found in the Consumer Mathematics chapter of your textbok. Principal: $12,000.00 Rate: 9.5% Effective Date: March 22 Maturity Date: December 5 Partial Payment Amount: $7,000.00 Partial Payment Due: August 30 O $5,127.99 O $5,478.74 O $5,614.52 O $5,650.87 41. Calculate the simple interest rate when P= $3600 I= $160 and=4 months. Round to the Section nearest hundredth. 4 a. 13.33% b. 0.13% C. 1.11% d. 4.00% e. 4.44% 2. Calculate the simple interest due on a four-month loan of $900 if the interest rate is 2.270 per month. a. $79.20 b. $7,920.00 c. $237.60 d. $6.60 e. $979.20 3. The maturity value of a three-month loan of $2,500 is $2,577. Find the simple annual interest rate to the nearest hundredth. a. 12.32% b. 11.95% c. 3.70% d. 97.01% e. 3.08% 4. What interest will be earned if $4000 is invested for 4 years at an annual rate of 7% compounded monthly? a. 5,288.22 b. 4,094.15 c. 4,166.22 d. 5,120.00 e. 6,501.65 A = $26,000 r =9% 5. Calculate the present value when compounded quarterly, and 1= 30 years. Round to the nearest cent.
- 1. An amount of 5 million is placed on deposit from 17 August to 31 December at 6.7%. What would be the interest earned if the rate had been quoted on an ACT/365, ACT/360 or 30/360 basis? 2. A dealer quotes a rate of 6.7% on a 30/360 basis for an investment from 17 August to 31 December. What would be the equivalent rate if the customer asked him to quote it instead on an ACT/365 basis? 3. What is the present value of a cashflow of EUR 5,327.21 arising in 276 days, using 4.2% as the rate of discount?A bank charges 11% simple interest in advance (that is 11% bank discount) on short term loans. Find the sum received by the borrower who request (i) GH¢900 for 90days, (ii) GH¢1500 from May 3 to October 15.1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years, the bank will pay $5,310.00 to the certificate owner. Based on a three- month interest period: What is the interest rate the bank is paying you each interest period? b) deposit? What are the nominal and effective interest rates on this certificate of