Question
Diego has a document valued at $ 1,000 with an expiration date at 2 years and during that period he will earn the following interest
Diego has a document valued at $ 1,000 with an expiration date at 2 years and during that period he will earn the following interest rates:
For the first quarter TNA 60% with daily capitalization.
For the next 5 months 55% annual cash.
For the next 7 months TNS 21% capitalized bimonthly.
For the last 3 quarters TNA 18% capitalized semiannually
Calculate:
a) The redemption value of the document.
b) The effective rate of the operation.
c) Interest earned between months 12 and 18 inclusive.
d) At the end of month 13, Diego sells the document to Rodrigo for $ 1,700. Calculate the monthly profitability obtained by each in this operation.
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