1) Two bills have denominations of 100,000 and 200,000 and expire after 2 and 4 months respectively from today. We want to replace them with
1) Two bills have denominations of 100,000 and 200,000 and expire after 2 and 4 months respectively from today. We want to replace them with a single bill that expires 6 months after today. Calculate the nominal value of the bill if the interest rate is 18%.
2) Two bills with nominal values of 10,000 and 84,000 that expire after 3 and 7 months respectively, were replaced by one bill with a face value of 200,000. Calculate the time of equivalence of this new bill, if the interest rate is 18% and the time of equivalence is considered the common expiration.
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