Question
Carlos invests $13,906.25 on January 25, 2010 at an annual simple interest rate of 1.700%. Use the daycount convention ACT/360. a) Define the accumulation amount
Carlos invests $13,906.25 on January 25, 2010 at an annual simple interest rate of 1.700%. Use the daycount convention ACT/360.
a) Define the accumulation amount and the accumulation factor for a loan/investment. Give the formula for the accumulation factor for simple interest with annual rate r.
b) Explain the daycount convention ACT/360. Explain the difference between that daycount convention and ACT/365.
c) How much interest does Carlos earn in 1 day?
d) How much money is in his account on March 13, 2010?
e) On what day does the balance in his account first equal or exceed $13,945.65?
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The Quality Audit A Management Evaluation Tool
Authors: Charles A. Mills
1st Edition
0070424284, 978-0070424289
