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What was the initial value of the deposit for jorge

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Reference no: EM132643783

Problem 1: Jorge made a deposit in Bank A for the first 95 days at an annual effective rate of 7% which varied after said term at an annual interest rate of 6.8% offering a term of 100 days. The reduction of rates by the National Bank impacted on a reduction in the interest rate, which was able to extend for 65 days at an interest rate of 6.6%. If at the end of the three tranches the final capital was $400,000, what was the initial value of the deposit?

Reference no: EM132643783

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