Question: Subject: Financial Mathematics - Compound Rational Discounting and Continuous Compounding 1. Calculate the total amount of the rational discount to be applied today to 2

Subject: Financial Mathematics - Compound Rational Discounting and Continuous Compounding 1. Calculate the total amount of the rational discount to be applied today to 2 promissory notes with maturities of 30 and 60 days each and whose face values are $4,000 and $5,000 respectively. The financial institution charges a nominal annual rate of 12% with quarterly compounding. Please detail ALL your calculations.

2. Today, Mr. Rdenas withdraws from the bank the amount of $17,251.75. What was the original principal he deposited 8 months ago at a CONTINUOUS NOMINAL RATE of 18.5%? Please detail ALL your calculations.

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!

Subject: Financial Mathematics - Compound Bank Discounting and Simple Rational Discounting 1. On March 7, Sol SAC was accepted a promissory note of $9,000 due in 90 days. What was the liquid value...

Hello my friend please assist me with my discussion Interest Rates Negotiation is a soft skill that might just be one of the most important skills you will ever learn. For this Discussion you will...

Hi, I have an Assignment for my Finance Subject. I have attached the necessary documentation here for you to view including the Lecture slides of all the Topics covered for this assignment. Please...

See page 129- 137 on attachment for more details there are five steps to the project. Step 1: Create the loan amortization schedule for the property. Step 2: Create the depreciation schedule. Step 3:...

please help me. I can pay only 70 dollars in this assignment Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning Objectives Describe what...

please help me in 70 dollars to do this assignment iin APA style referencing Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

You helped me a couple of weeks ago. I was wondering if i could setup a time for tomorrow that you could be available to help me with some questions. I will pay $20 per question. They are short and I...

IFRS Global Accounting. Please complete c, d, e, f. showing all your calculations and answers to the questions asked. Ill give thumbs up! Mitsubishi Electric Corporation-Time Value of Money...

I've attached the question as a word file, thanks! JWCL165_c10_444-505.qxd 8/12/09 7:24 AM Page 444 10 Liabilities Chapter STUDY OBJECTIVES After studying this chapter, you should be able to: 1...

Describe why employees resist change and explain how force-field analysis can be used to manage change and overcome resistance.

What is a species? What types of observations do researchers analyze when trying to identify species?

2. (LO2) Which has greater interest rate risk, a 30-year Canada bond or a 30-year BB corporate bond?

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".