In April 2025
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Brooke pays $239.52 for a car lease at the beginning of every quarter for 5 years and 9 months at 4.46% compounded quarterly. What type of annuity is this?
3. A loan of $36,550.00 at 5.00% compounded semi-annually is to be repaid with payments at the end of every 6 months. The loan was settled in 5 years.
a. Calculate the size of the periodic payment. Round to the nearest cent.
b. Calculate the total interest paid. Round to the nearest cent.
Jaspreet receives $3,200 from an investment at the beginning of every quarter for 7 years and 9 months at 4.94% compounded semi-annually. How many payments are there in this annuity (rounded up to the next payment)?
You deposited BDT 120,000 in a bank account 7 years ago. The bank had been giving you 12% interest
compounded quarterly for the last 7 years. Today the bank revised the interest rate and the new interest rate
will be 6% interest compounded monthly from today onwards. How much money will you have in your
account after 4 years from now?
ABC Company Ltd purchased 5000 cocoa futures contract at a price of $150
per contract. As part of the contract, ABC was required to deposit $10 per
contract initially in their account with the maintenance margin set at $5 per
contract. If the price per contract falls to $142 overnight, what action will the
exchange require ABC to undertake
after six months you deposit R1700 jnto an ordinary savings account, at 7,5% interest per anum, compounded six monthly. six months later you you deposit another R1600 and six months later you deposit R1700 into the same account. calculate the balance in this account at the end of 2 years
Agyenim is concerned about his exposure because he believes that there are two possible scenarios: (1) the pound will depreciate by 3 percent over the next month or (2) the pound will appreciate by 2 percent over the next month. There is a 70 percent chance that Scenario 1 will occur. There is a 30 percent chance that Scenario 2 will occur.
Agyenim notices that the prevailing spot rate of the pound is GHS 8.1 and the one- month forward rate is GHS 8.6. Agyenim can purchase a put option over the counter from a securities firm that has an exercise (strike) price of GHS 8.6, a premium of GHS0.025, and an expiration date of one month from now. Determine the amount of cedis received by the Best Pineapple Company under each of the two exchange rate scenarios if:
a) The receivables to be received in one month are not hedged.
b) A put option is used to hedge the receivables in one month.
c) A forward hedge is used to hedge the receivables in one month.
Currency. Lending Rate Borrowing Rate
Dollars 7.10% 7.50%
Ghana Cedis 6.80% 7.25%
Cal Bank has the capacity to borrow either GHS 10 million or $5 million. If Cal Bank's forecast is correct, what will its dollar profit be from speculation over the five-days period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)?
and the spot rate at the time the option was exercised was $.92. Assume Caleb
immediately sold off the Canadian dollars received when the option was exercised. Also
assume that there are 50,000 units in a Canadian dollar option. What was Caleb’s net
profit on the put option?
