Question

15. A loan payment of $4200 was due 80 days ago, and another payment of $1800 is due in 40 days from now. What single payment 70 days from now will pay off the two obligations if interest is to be 8% and the agreed focal date is 70 days from now? 16. When Danny borrowed $2400, he agreed to repay the loan in two equal payments, to be made 90 days and 130 days from the day the money was borrowed. If interest is 8.25% on the loan, what is the size of the equal payments if a focal date of today is used? 17. A 6-month note for $18,200, with interest at 8% is issued on April 1, 2018. Find present value on June 20, 2018 if money is worth 7.2%. 18. What is the price of a 95 days, $150,000 Government of Canada treasury bill that yields 0.53% per annum?

Answer 1

Question 15

А B 1 2 Due 80 days ago $4,200 3 Due in 40 days $1,800 Given in question 4 Interest Rate 8% 5 6 Present Value of dues 80 days ago $4,273.64 =B2*(1+(B4*80/365)) 7 Present Value of due in 40 days $1,784.36 =B3/(1+(B4*40/365)) 8 Total Present Value $6,058.00 =SUM(B6:37) 9 10 Single Payment to be made in 70 days $6,150.94 =B8*(1+(B4*70/365)) 11

Single Payment to be made in 70 days = $6,150.94 or $6,151