WORKSHOP I – FINANCIAL MANAGEMENT

1. Find the equivalent of 32% Annual Effective to:

a) Nominal Quarterly
b) Nominal Semiannual
c) Nominal Annual
d) Nominal Monthly

2. How much is 27% Nominal Quarterly in terms of Annual Effective?

3. A Financial Institution assure you an Effective Rate of 9.05 What would be the:
a) Nominal annual
b) Nominal Monthly

4. Another Financial Institution offers you an Effective Rate of 8.41, what would be the:
Anticipated Anticipated
Periodic Nominal

a) Monthly
b)Quarterly
c) Semiannual
d)Annual

5. What would be the equivalent of an Interest Rate bimonthly periodical of 1.04% to:
a) Bimonthly Nominal Annual
b) Annual Effective
c) Semiannual Nominal Annual
d) Semiannual Nominal

6. What would be the equivalent of an Interest Rate of 0.82% Periodical Monthly to:
a) Monthly Nominal Annual
b) Annual Effective
c) Nominal Annual 10 Month
d) 10 Month Periodical

7. What would be the equivalent of an Interest Rate of 6.32% Semiannual to:

a) Semiannual Nominal Annual
b) Annual Effective
c) Nominal Annual Monthly
d) Monthly Periodical

8. What would be the equivalent of an Interest Rate Quarterly of 2.5% to:

a) Quarterly Nominal Annual
b) Annual Effective
c) Nominal Annual 7 Months
d) 7 Months Periodical

9. What would be the equivalent of an Interest Rate Semiannual of 4.5% Anticipated to:
a) Annual Effective
b) Semiannual Nominal Annual
c) Semiannual Periodical

10. What would be the equivalent of an Interest Rate Semiannual Nominal Annual of 8.56% to:
a) Annual Effective
b) Nominal Annual Monthly

11. What would be the equivalent of an Interest Rate Quarterly Nominal Annual of 12% to:
a) Annual Effective
b) Nominal Annual Monthly
 WORKSHOP I – FINANCIAL MANAGEMENT

12. Calculate the amount or the future value at compound interest that become $ 1,000,000 after eight (8) years if
the interest rate is 7.15% Annual Effective and have quarterly capitalizations?
A/

13. A person receives $ 1.784.755.79 for having invested in a CD of nine (9) months. If the bank paid a rate of
6.54% Quarterly Nominal Annual, what was the value of the investment?
A/

14. You want to have $40 million within eight (8) months. To invest it is offered the opportunity to do so in an
entity that pays 0.82% monthly in advance capitalized with the same frequency. How much should you invest
today?
A/

15. If invested $5,000,000 at an interest rate of 7.4% Quarterly Nominal Annual, how much accumulates within nine
(9) months?
A/

16. How much should you invest today to have $1.2 million within five (5) years, $ 1.2 million within eight (8)
years and $ 1.2 million within ten (10) years; if the interest rate is 8% Semiannual Nominal Annual Capitalized?
A/

17. A machine reaches the end of his life within a year and a half. To replace it with another will cost $80 million.
The old machine will be received as a down payment in $15 million. What deposit must be done today in order
to have enough money for the new machine in an account that pays 7.5% Quarterly Nominal Annual?
A/

18. If an investor wants $50 million within six (6) months, how much he need to put today in an alternative
investment that generates a yield of 6.7% Quarterly Nominal Annual capitalized?
A/

19. At what Quarterly Nominal Annual capitalized should I put $26 million to get $ 30.046.234.53 within sixteen
(16) months?
A/

20. How much must be deposited today in an entity that recognizes the 7.1% Nominal Monthly capitalized, if you
have $ 35 million after 613 days?
A/

21. A person must be paid within six (6) months a letter for $250 million plus interest 9.3% Quarterly Nominal
Annual capitalized. If the corresponding letter is sold two (2) months before expiry and the buyer want to win an
interest rate of 0.93% monthly capitalized, how much would be the purchase price of the letter?
A/

22. An investor wishes to obtain a cash interest that is equal to 8.2% Quarterly Nominal Annual capitalized, to buy a
CD, in the secondary market, the title was originally issued to 90 days, with interest payable Quarterly Nominal
Annual capitalized 7.64%. At what PRICE should make the transaction 45 days to maturity?
A/

23. (Base 360) A CD issued on April 10th for one year, it pays 8% Quarterly Nominal Annual not capitalized. If an
investor buys it on 15th February of the following year of being issued and obtain during his tenure a total return
of 9.23% Annual Effective, at what PRICE did he bought it?
A/

24. What would be the equivalent of 10% Quarterly Nominal Annual Anticipated to Annual Effective?
CONSIDER THIS RATE AS THE DTF FROM ONWARDS (DTF = 10.00% QNAA)
A/
25. What would be the equivalent of DTF + 3? A/
 WORKSHOP I – FINANCIAL MANAGEMENT

26. What would be the equivalent of DTF + 10 in terms of?

Annual Effective; Monthly Nominal, Monthly N Anticipated.
Semiannual N Anticipated, Semiannual Nominal, Quarterly N Anticipated,
Quarterly Nominal

27. If I have been offered an Interest rate of 15% Annual Effective, What would be the spread over the DTF?
A/

28. If I have been offered an Interest rate of 18% Annual Effective, What would be the spread over the DTF?
A/

29. Today the treasuries bonds of Colombia that has its maturity on 2024 is at 15%, and in one month goes up 100
basis points, what would be the spread over the actual DTF (10%)?
A/

30. A lender lends $1,000 at a 24% compounded annually for two years, how much will he have after two years?
A/

31. The same lender prefers the debt to be paid in two equal annual installments, how much would he receive each
time?
A/

32. If you invest $100,000 for three months at 3% per month, how much will you have? Calculate simple and
compound interest.
A/

33. If you invest today 5 million at an interest rate of 2.5% monthly compound, how much will you have after 6
months and after a year?
A/

34. A person wants to invest a sum of money today to withdraw $2'000.000 in two years, what will be the amount to
be deposited, if the yield is 8.86% Quarterly capitalized?
A/

35. Which uniform series of annual payments corresponds to $1'000.000 credit of 5 years; if the interest rate is DTF
+ 5 points?
A/

36. If I have a series of savings of $400,000 at the end of each year during 6 years, at a rate of 25% EA, what would
be the FV?
A/

37. If I have a series savings of $552,000 at the beginning of every month during 6 years, at a rate of 7% EA, what
would be the FV?
A/

38. How much must be deposited today to withdraw $ 1'000 .000 each year for five years if the interest rate is 5%
per year?
A/

39. A merchant pays a monthly rent of $500,000 on the first day of each month, if he wants to pay one year lease in
advance, how much would be the equivalent if he has to pay for the money an interest rate of 2.5% monthly?
A/

40. A student begins college and applies for a loan to pay the tuition; He commits to repay it once he graduates. He
Starts studying and receives the sum of $400,000 at the beginning of each month for 5 years, to pay the bills.
The student agrees to pay the debt in equal monthly installments, upon graduation and working, within a period
 WORKSHOP I – FINANCIAL MANAGEMENT

of three years. If both interest, of what He paid and the loan He will use to repay is 25% annual effective, how
much would He pay each month after graduation?
A/