Example 2: The firm's monthly cash required is 730,000. The fixed cost per transaction done by the firm is 5. Therate of interest on marketable securities is 3% p.a. Calculate the optimum cash balance required by the firm.Fixed cost per transaction (c)Monthly Total Cash Requirement (T)Interest rate on marketable securities (k)75730,0003% p.a.%3D

Answered: Image /qna-images/answer/4e03a3f2-ebfe-46ee-b7f1-19def253fcab.jpg

Answered: Example 2: The firm's monthly cash…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

D5) The annual term structure of interest is (6%, 6.3%, 6.7%, 7%, ... ) and the 3-year deferred 2-year forward rate is 7.8%. Find the par yield for a 5-year bond.
3 Jeremy has $2300 to invest for 6 years. a) Which is the better investment? Justify your answer. Investment A: Guaranteed Investment Certificate (GIC) that earns 6.8% compounded semi-annually Investment B: bond that earns 6.7% compounded monthly
Example 60. A bond has a face amount of Rs 1000 and maturity period of 10 years. The nominal interest rate is 6%. What should be the price of the bond to yield an effective interest rate of 8%. CS Scanned with CamScanner
Exercise #10 Simple Interest A. Find the unknown principal (P), interest rate (r), time (t), interest (I) and maturity value (F) by completing the table below. Principal (in Php) 2,000 Maturity Value (in Php) (2) (4) Interest Rate Interest Time (in Php) (1) (in % per annum) 10 6 months 10 months 4 years and 3 months (7) 12 years (3) 12 800 88,000 (5) (6) 114,180 500,000 9.5% (8) 600,000 (9) 10% (10) 1,210,000
QUESTION: You have a credit card on which you currently owe $10,000. The card has a 19.99% annual interest rate and requires a minimum monthly payment of $200. Assume that you do not incur any other purchases on the card. Part 2: If you double the minimum payment, how long will it take you to pay off the card? How much total interest will you pay? How much interest cost will you save between (a) and (b)? Part 3: If you pay $100 per month, how long will it take you to pay off the card? Explain
Treasury Bill ( T-Bills ) is a short-term investment product ( from 91 days to 365 days) backed by the Bank of Ghana on behalf of the Government. When you buy one, you are essentially lending money to the government of Ghana. Treasury Bills are one of the safest forms of investment in Ghana because they are backed by the Government of Ghana and are considered risk-free. Upon maturity, the government will repay the amount it borrowed ( your investment ) with the determined interest rate given at the time of the investment. With this information in mind, a student from Ghana Communication Technology University decided to invest her GH¢24,500.00. She divided the money into three different accounts. At the end of 2020, she had made GH¢1,300.00 in interest. The 91-days yield on each of the three accounts was 4%, 5.5% and 6%. If the amount of money in the 4% account was four times the amount of money in the 5.5% account, how much money did she initially placed…
5. Jon invests an unknown amount of money at a monthly compound interest rate of 0.5%. After 6 years Jon has $800. How much did Jon initially invest?

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS

Example 2: The firm's monthly cash required is 730,000. The fixed cost per transaction done by the firm is 75. The rate of interest on marketable securities is 3% p.a. Calculate the optimum cash balance required by the firm.