Question
(a) If you invest $100 today at 5%per annum for 180 days, how much will your investment value be at maturity? (Assuming a 365-day year)
(a) If you invest $100 today at 5%per annum for 180 days, how much will your investment value be at maturity? (Assuming a 365-day year)
i.Find the answer if the interest rate is specified as the simple rate.
ii.Find the answer if the interest rate is specified as the discount rate.
iii.Find the answer if the interest rate is specified as the discretely compounded rate with daily compounding.
iv.Find the answer if the interest rate is specified as the continuously compounded rate.
(b) An investor lends an amount of money for a number of days. Define a VBA function to calculate the interest earned at maturity if the investor lends the money at the discretely compounded rate with daily compounding.
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