36

You are working as a treasurer for a Toronto bared long term healthcare company your company has $100,000,000 of excess cash and you notice that, on June 29. the 3-month overnight financing rate is 012%. If you consider depositing your company's excess cash ($100,000,000) for 28 consecutive days in this overnight rate, calculate the after tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction cost and there are 30 days in one month (Do not use the sign your answer is $123,45670, enter12345678) Nurserie Response