Question
Sam invests $23,807.50 on January 3, 2018 at an annual simple interest rate of 2.725%. Use the daycount convention ACT/365. a) Define the accumulation amount
Sam invests $23,807.50 on January 3, 2018 at an annual simple interest rate of 2.725%. Use the daycount convention ACT/365.
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 i.
b) Explain how to compute t using the daycount convention ACT/360. Explain the difference between that daycount convention and ACT/365.
c) How much interest does Sam earn in 1 day?
d) How much money is in her account on March 4, 2018?
e) On what day does the balance in her account first equal or exceed $23,915.63?
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Accounting Business Reporting For Decision Making
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond
7th Edition
0730369323, 9780730369325
