Question: awnser with formulas. Include timeline for 3 Formulas: I =Prt S = P(1 + rt) I= S-P 3. Answer the following questions on Equated Dates.

awnser with formulas. Include timeline for 3 awnser with formulas. Include timeline for 3 Formulas: I =Prt S =

P(1 + rt) I= S-P 3. Answer the following questions on EquatedDates. (Value 10: marks as indicated) You must draw timelines for eachquestion. a) Debt payments of $2,255.00 and $1,794.00 are due two monthsfrom now and ten months from now respectively. What single payment is

Formulas: I =Prt S = P(1 + rt) I= S-P 3. Answer the following questions on Equated Dates. (Value 10: marks as indicated) You must draw timelines for each question. a) Debt payments of $2,255.00 and $1,794.00 are due two months from now and ten months from now respectively. What single payment is required to pay off the debt today if interest is 6.36%? (Value 2) b) Debt payments of $1,850.00 due today, $915.00 due in 103 days and $878.00 due in 302 days respectively are to be combined into a single payment to be made 170 days from now. What is that single payment, if money is worth 9.5% p.a. and the agreed focal date is 170 days from now? (Value 4) c) A loan payment of $2,600 was due 60 days ago, one due 30 days ago for $1,400 and another payment of $1,200 is due 45 days from now. What single payment today will pay off the three obligations if interest is to be 11.125%? (Value 4) 4. Answer the following questions on Treasury Bills. (Value 5 - 1 mark each) a) What is the price of a 183-day, $500,000 Province of Alberta treasury bill that yields 1.15% per annum? b) An investment dealer paid $24,956.25 to acquire a $25,000, 91-day Government of Canada treasury bill at the weekly auction. What was the annual rate of return on this T-bill? Formulas: I =Prt S = P(1 + rt) I= S-P 3. Answer the following questions on Equated Dates. (Value 10: marks as indicated) You must draw timelines for each question. a) Debt payments of $2,255.00 and $1,794.00 are due two months from now and ten months from now respectively. What single payment is required to pay off the debt today if interest is 6.36%? (Value 2) b) Debt payments of $1,850.00 due today, $915.00 due in 103 days and $878.00 due in 302 days respectively are to be combined into a single payment to be made 170 days from now. What is that single payment, if money is worth 9.5% p.a. and the agreed focal date is 170 days from now? (Value 4) c) A loan payment of $2,600 was due 60 days ago, one due 30 days ago for $1,400 and another payment of $1,200 is due 45 days from now. What single payment today will pay off the three obligations if interest is to be 11.125%? (Value 4) 4. Answer the following questions on Treasury Bills. (Value 5 - 1 mark each) a) What is the price of a 183-day, $500,000 Province of Alberta treasury bill that yields 1.15% per annum? b) An investment dealer paid $24,956.25 to acquire a $25,000, 91-day Government of Canada treasury bill at the weekly auction. What was the annual rate of return on this T-bill

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!