1)Definitions

 Simple discount: Discount is a credit operation that is carried out mainly in

banking institutions, and consists of them acquiring bills of exchange or
promissory notes, from whose face value they deduct a sum equivalent to
the interest that the document would accrue between the date when it is
received and the expiration date. This anticipates the current value of the
document

 Real discount: different from the commercial discount, this is calculated on

the real value that is anticipated, and not on the nominal value.

 Commercial discount: the amount that is discounted is calculated on the

face value of the document. It has a similarity to the discount that merchants
make on their items when they sell them, removing a few pesos from the list
price.

2)Formulas
 Simple discount:

D=Mnd
Where, D = commercial discount
M = nominal value of the document
n = term in years
d = annual simple discount rate

 Commercial discounts:

𝑃=𝑀 (1−𝑛𝑑)

Where P = Commercial value

M = Nominal Value
d = discount rate
n = time or period
  Nominal discount:

Where P = Commercial Value

d = discount rate
n = term

3)Exercise

In short, a document with a maturity date of January 5, nominal value of

$6,500 and a simple annual rate of 10.5% is negotiated on October 23,
considering

A) Actual discount:
D=Mnd
M=6500
n= 4/12= 0.3333333333
d=10.5%> 10.5:100= 0.105
D=6500*0.3333333333*0.105
D=227.5> discount

B) Commercial discounts:

M=6500

P= ?

n= 4/12= 0.3333333333

d=10.5%/100 = 0.105

P=6500(1-0.3333333333*0.105)

P= 6272.5
Exercises:
1) Determine the final value of an investment of $100,000,000, for 36 months
at a rate of 5% quarterly.

 M:?
 C:100,000,000.
 I:5% :100=0.05
 T:36 months :3=12
100.000.000(1+0,05*12) =100.000.000*1,6=160.000.000.

2) A company decides to purchase steel cutting machinery, worth

USD$10,000, said transaction is backed by a 24-month bank loan, with an
annual interest rate of 8%. Determine how much they will end up paying for
the machinery purchased.

 M:10,000.
 C:?
 I:8%:100=0.08
 T:24 months :12=2

( )
10.000
=10.000∗( 1 ,16 )=1 1.600
1+0.08∗2
0.16
1.6

3) How long should you keep a deposit of $40,000 in a savings account, if it

pays interest of 3.4% quarterly, if you want to finally obtain an amount equal
to the initial capital, plus 50% of the same amount? Indicate your answer in
semesters

 M:40,000.
 C:60,000.
 I:3,4:100=0.034
 T:?
40.000
−1=0.5
60.000
0.034=9.8
58.84=9 , 8
N :14.71∗4=
6
4) Find the future value of a deposit of $50,000, invested at an interest rate of
16% per year, and which will remain invested for 40 quarters.

 M:50,000.
 C:?
 I:16% annual:100=0.16
 T:40 quarter 40*3=120:12=10

50.000(1+0.16*10) =
50.000*2.6=130.000.

5) Knowing that there are savings of $350,000 that earn 6.7% every six
months and that they will remain deposited for 5 years, determine the future
value of said deposit.

 M:350,000.
 C:?
 I:6.7
60
 T:5 years =10 semester
6

M=350,000(1+0.067*10) = 350,000*1.67=584,500
0,67
6) By withdrawing an investment, a total of $790,450 could be obtained,
knowing that it was maintained for 3.5 years at a rate of 5.2% quarterly.
Determine the current value of the investment.

 C:?
 M:790,450.
 I:5.2 quarterly:100=0.052
42
 T:3.5 years=3.5*12= =14
3

790.450
=
1+ 0,052∗14
790.450
=457.436
1.728
 7) If you ended up paying a total of $3,450,676 for a debt that you maintained
for 7 quarters at an interest rate of 2.7% per month. What is the current
value of the debt?

 C:?
 M:3,450,676.
 I:2.7 monthly :100=0.027
 T:7 semester =7*4=28

3.450 .676
1+0,027∗28
1+ 0,756=1.756
3.450 .676
=1.965 .077
1.756

8) If a credit for $2,990,000 was requested and at the end of 14 two-month

periods a total of $5,789,000 was paid. What was the bimonthly interest rate
applied?
 C:2,990,000.
 M:5,789,000.
 YO:?
 T:14 bimester
5.789.000
−1
2.990.000
14=0 ,7
9) If a person invests $850,000 in mutual funds and withdraws $1,120,340 after 5
semesters. What was the semiannual interest rate for the operation?

 C:1,120,340.
 M:850,000.
 YO:?
 T:5 semester
1.120.340
−1
850.000 =6,3
5
10) After purchasing a property valued at $90,000,000, it is known that you will end
up paying $180,777,113 at an annual interest rate of 4.5%. Determine the payment
time for the property considering annual capitalization.
 C:90,000,000.
 M:180.777.113.
 I:4.5% annual :100=0.045
 N:?
N =180.777 .113
−1
90.000 .000
0,045
N =22

11) If you have a debt of $720,000 and need to pay a maximum of $980,000
knowing that the quarterly interest rate is 3.3%, how much time do you have to pay
off the debt?
 C:720,000.
 M:980,000.
 I:3.3%:100=0.033
 N:?

980.000
−1
720.000
0,033
N=11trimestre

12) If a client of a company has a merchandise debt for $4,000,000, and wishes to
settle it, since he or she does not have immediate liquidity, how long will it take to
pay the debt if the rate applied is 5% semiannually and the final amount cannot
exceed $6,000,000.
 C:4,000,000.
 M:6,000,000.
 I:5% annual :100=0.05
 N:?
 6.000 .000
−1
4.000 .000
0.05
N=1 O semestre

13) $6,500,000 is deposited for 15 months at an interest rate of 3.59% per year.
What will be the final value of the operation?
 C:6,500,000.
 M:?
 I:3.59% annual :100=0.039
 T:15 months:12=1.25
M =6.500 .000 ( 1+0,039∗1 ,25 )=6.791 .688

14) Calculate the months that a deposit of $775,677 must be maintained at an

interest rate of 4.5% monthly, to obtain an amount of $1,566,888.
 C:775.677.
 M:1,566,888.
 I:4.5% monthly :100=0.045
 N:?

1.566 .888
−1
775.677 =22.6 months
0,045

15) You wish to apply for a mortgage loan to buy an apartment worth $54,000,000,
within which you will pay 10% in cash, so 90% will be financed with credit for 20
years at an interest rate of 0. 25% monthly interest. What will be the final amount to
be paid on the loan?
 C:48,600,000.
 M:?
 I:0.25% monthly :100=0.025
 T:20 years=20*12=240
M =48.600 .000 ( 1+ 0,025∗240 )=77.760 .000
16) Your company seeks financing of $45,000,000 to be able to operate during this
year without any budget problems. Said financing will be paid in 12 monthly
installments. If the simple interest rate is 9.5% per year, what will be the amount
you will pay at the end of the period?
 C:45,000,000.
 M:?
 I:9.5% annual :100=0.095
 T:12 months
M =45.000 .000 ( 1+ 0,095∗1 ) =49.275 .000

17) A leasing company provides financing for its client for a total amount of
$55,000,000. If the interest rate on the operation is 8.5% every six months,
determine how long it will take to obtain a total of $80,000,000.
 C:55,000,000.
 M:80,000,000.
 I:8.5% semester:100=0.085
 N:?
80.000 .0000
55.000 .000
0,085
N=5 , 3 semestre

 18) If a customer purchases a product, which has a cash sales value of

$99,990 and is offered a payment term of 36 monthly installments with a
rate of 24.5% per year, determine how much he or she will end up paying at
the end of the operation. .
 C:99,990.
 M:?
 I:24.5% annual :100= 0.245
 T:56 monthly:12=3
M =99.990 ( 1+0.245∗3 )=173.483
19) Calculate the final value with simple interest of a deposit of USD$115,000.00,
with a 4-quarter term with a quarterly rate of 10%.
 C:115,000.00 USD
 M:?
 I:12% quarterly
 T:4 quarter

M =115.000 .00 ( 1+0 , 1∗4 )=161.000 .00

20) Determine the current value of a mortgage loan, for which $172,000,000 was
paid in 360 months, at an annual rate of 4.44%.
 C:?
 M:172,000,000.
 I:4.44% annual :100=0.0444
 T:360 months :12=30 years
172.000 .000
(1+0.0444∗30)
C=73.756 .482