An ovedraft interest of 15%per annum is negotiated on the overdrawn balance at the end of each month. There is an interest on cash surplus. Let's say the overdraft is R235 256 How do you make the calculation?
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- The following parameters are provided:S = $40, K= $45, r = 5% (continuously compounded), Time to maturity = 6 months, p = $6, Using put-call parity, the price of the call is $1.92 $2.11 $2.47 $2.78Help meA payment stream consists of a payment of $1600 today, a payment of $2400 in 3 months, and a payment of $2600 in 21 months. What is the fair market value of this payment stream 18 months from today? Assume a compound interest rate of 6.5% compounded quarterly. Today + $1600 FV1 = $ PV3 = $ Start by calculating the following values on the time diagram: FV2 = $ 3 Months The fair market value of this payment stream is: Total = $ Time Value of Money Solver $2400 Enter the given values. 0 N: = 0 Number of Payment Periods 1:% = 0 Annual Interest Rate as a Percent PV: = Present Value PMT: = 0 Payment FV: = Future Value P/Y: 0 12 V Payments per Year C/Y: 12 V Compounding Periods per Year PMT: = END € Solve Solve Solve Solve 18 Months Solve FV2 FV1 + PV3 Total 21 Months $2600
- Compute the simple interest INT for the specified length of time and the future value FV at the end of that time. Round all answers to the nearest cent. You borrow $78,000 for 10 months at 0.03% per month. X INT = $ FV = $What is the Effective Annual Return (EAR) if the Annual Percentage Rate (APR) is 15% compounded monthly? Select one: a.16.08% b.15.7% c.15% d.16.55%Find the What is the cC of initial cost 936,069$, annual costs of 42,230s, and recurring costs every 5 years of 94,1348 at IR 12% per year. "Enter the final value using +/- sign and without the currency." Example: -23.43 OR +23.43
- A) You have the following information about prices today, month=0.2-month t-bill, interest rate 0.026-month t-bill, interest rate 0.025What will the forward rate between 2 month and 6 month be??consider account APR of 4.6% find APY and daily compounding. Comment on how changing the compounding period affects the annual yield. Question content area bottom Part 1 When interest is compounded quarterly, the APY is enter your response here%. (Do not round until the final answer. Then round to two decimal places as needed.)Scheduled payments of $890 due today, $525 due in 15 months, and $555 due in 33 months are to be replaced by a single equivalent amount paid at the focal date of 6 months from today. Money earns 11.1% compounded quarterly. Using P/Y=C/Y=4 and PMT=0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $890 due today to the focal date: A PV = N= A FV= Moving $525 due in 15 months to the focal date: N = A/ PV = Moving $555 due in 33 months to the focal date: N = A/ PV = The single amount at the focal date is = A FV= A FV = A/ A A/
- Suppose that the 2 month and 5 month continuously compounded SOFR rates are 1% and 2.20% respectively. What is the forward SOFR rate for the period between 2 months and 5 months on a continuously compounded basis? a. 3.00% b. 3.25% c. 2.50% (Answer is 3% but how do I get there)Account A has a monthly rate of 0.4%. Account B has a quarterly rate of 1.2%. All else equal, which one should have the higher APR? A B A=BGiven an EAR of 14% and semiannual compounding, what is the APR?