Cliffe Dekker Hofmeyr ("CDH") received an amount of R3,500,000 on the 15th of October 2015 from a client. The client has requested the money to be invested into a call account until the transaction is finalised on the 3rd of February 2016, upon which the investment will be uplifted and paid out.          

 1.1 Calculate the balance of the investment on 31 December 2015, assuming the money was invested on the day CDH received the funds from the client. 

The following assumptions must be used for the questions that follow:   

Prime rate:    

Current rate :9.75%   

1/29/2016 : 10.25% 

Call Account Rate: Prime less 4%   

# of Days in the Year:  365   

 Interest accrue monthly