Course: Financial Mathematics A creditor of loan company has 3 promissory notes as of March 25. First is 55 days past due and its value was $1,800,000; second will be due in 7 months and its value will be $800,000. Third and last promissory note was signed on March 2, for $824,000 with a 6.5% interest rate. Company is able to sell deposits at 95% of par value and make following investments: 1.- An investment in financial market and deposits in money received in a time deposit (DAP) yielding 7.5% for 30 days. 2.- Amount received after 30 days is invested in a mutual fund that yields 9% per annum for 35 days. 3.- Then he takes another 90-day term deposit with a yield of 8%, but he must sell it after 60 days with a discount rate of 9%. Answer: What was LOSS or PROFIT of WHOLE OPERATION? If we consider that value of money is 8% per annum and that INTEREST FOR DELAY must be SURCHARGED by 1.5 points.

NOTE: I have already seen exercise developed in other web portals. What is not clear to me is that "1.5 points of DEFERRED INTEREST" is omitted in development, why?

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