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October 9th, 2008, 11:12 PM   #1
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simple and compund interest help

An investor purchased a $500000, 180 T-bill, 150 before maturity to yield 2.86%. he then sold the T-Bill 80 days later to yield 2.45%. How much profit did he make for the lenght of time he help the T-Bill and what was his actual rate of return?
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my work so far:

s= 500000 (1+0.011753424)
500000(1.011753425)
=505876.71

p=505876.71 (1+0.00469
=508.25

**AND**
I need help:

You owe two payments $6000 one due in 6 months and the other due in 15 months. If you make a payment of $6000 today, when must you make the second payment of $6000 if money is worth 8% compounded semi annually?
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This is my work so far:

Fv=6000 (1+0.00667)^-15
=6000(0.9051237746)
=5430.8

n= 12x15/12
n=15
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sharani is offline  
 
October 10th, 2008, 02:25 PM   #2
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Re: simple and compund interest help

Quote:
Originally Posted by sharani
**AND**
I need help:

You owe two payments $6000 one due in 6 months and the other due in 15 months. If you make a payment of $6000 today, when must you make the second payment of $6000 if money is worth 8% compounded semi annually?
------------------------------------------------------------------------
This is my work so far:

Fv=6000 (1+0.00667)^-15
=6000(0.9051237746)
=5430.8

n= 12x15/12
n=15
Edit/Delete Message
You have to familiarize yourself with exercises/problems in equations of value.
Using today as the comparison date, we have
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