Includes formulas and procedure

Exercise 1

We have a nominal rate of 12% compounded semi-annually.

It is requested:

Calculate the effective rate in one year.

Calculate the effective rate in two years.

Exercise 2

A company has two debts with a bank; the first debt is $100,000 with 9% interest, it was acquired six months ago and is due today; the second for $200,000 at 12%, was contracted two months ago and expires in four months. Due to the inability to cancel the debt, the company proposes to the bank to refinance its debt, reaching an agreement between the parties to make a single payment in five months after the second financing expires, with an interest rate of 15% convertible per year. monthly.

It is requested:

Indicate the value of the payment at the focal date.

Exercise 3

Jos has in his possession a document receivable for $1,150,000, which matures in four months, with interest at 3% per month, and he wants to negotiate with Bank "A" that accepts the document, but with a discount of 1.5%.

It is requested:

Determine the value of the document at maturity.

Indicate what would be the discount applied.