RESEARCH WORK

Case 4: Analyzing the investments of Teodomira, a CERTUS

graduate student

Members:
1. Daniel Martin Fabian Salas
2. Silvia Nathaly Oporto Antón
3. Sheyla Pamela Sullon Yovera

Case 4: Analyzing the investments of Teodomira, a CERTUS

graduate student

Teodomira is a CERTUS alumna. After some time he started a successful

business, NUTRIMALLQUI, which generated a very good profit. She decides to
place 20% of this at 2.5% annual interest; 50% at 1.2% annual interest and 30%
at 1.0% annual interest. After one year, the interest generated by the capital
invested by Teodomira is S/. 700.

WE COLLECT THE DATA :

Present Value = ?

Interest = 700

Time (N) = 1 Year

Final Value = ?

We must calculate the Present Value (NPV) , the Final Value (FV)
Formula to Find (VA)

VF : VA + i ^n

VF: VA+700

VA + 700 = 20% VA (1+25%)^1 + 50%VA (1+1.12%)^1 +30% VA (1+ 1%)^1

VA + 700 = 0.2 VA (1.025 ) + 0.5 VA (1.012 ) + 0.3 VA (1.01 )

700 = 0.205 + 0.506 + 0.303 - 1 VA

700 = 0.014 VA

VA = 700 / 0.014 VA

VA = 50,000 soles

Now we find the final value with the following formula :

Find Final Value (FV)

VF = VA+700

VF = 50 000 + 700

FV = 50,700 soles

WE COMPLETE THE DATA:

Present Value = 50,000

Interest = 700

Time (N) = 1 Year

Final Value = 50,700

 CASE DEVELOPMENT :

1.- What do you think would be the alternative that you would
propose to Teodomira so that she can double the interest
obtained?

VA = 50 000

I = 1400 (VF / VA) - 1 x 100

VF = 51 400

WE REPLACE:

(VF / VA) - 1 x 100

( 51 400 / 50 000 ) - 1 x 100

(51 400 ÷ 50 000) - 1 x 100

0.028 x 100

= 2.8%

2. -What do you think is the main difference between the annual

interest rate (APR) and an EARR that financial institutions work

with?

Effective annual rate of return Effective annual rate of return

(TREA) (TEA)

It is the rate to be charged for the

Indicate the amount you will earn
for a deposit in the different types
of savings accounts offered by the
financial system.
money that the financial institution
will lend you, but in addition to
this rate the company will charge
you additional expenses, such as
commissions.
 In which of the situations raised in the Teodomira case did you
obtain more interest?

Bank No. 1

Interest 2.5% total = 20% of 50 thousand = 10,000 x 2.5% = 250 soles

Bank No. 2

Interest 1.2% total = 50% of 50 thousand = 25 000 x 1.2% = 300 soles

Bank No. 3

Interest 1% total = 30% of 50 thousand = 15,000 x 1% = 150 soles

Teodomira invested 50% of the Present Value at an interest rate of 1.2% in

the Bank that obtained the highest interest.

4.- Find out about other national financial institutions that

offer better interest rates and with them prepare a proposal for
Teodomira to generate the same interest, but in less time.

Time formula (N )

N= Log (VF / VA) / Log (1 + i )

ROOT CRACK ( 4.4% )

N = log (50 700 / 50 000) / log ( 1+ 4.4% )

N = 0.32287668393 x 360

N = 116.235606217 = 116 DAYS

 AZTEKA BANK ( 3.9% )

N = log (50 700 / 50 000) / log ( 1 + 3.9 % )

N = 0.36339187598 x 360

N = 130.821075355 = 131 DAYS

CRAC ANDES (4.3%)

N = log (50 700 / 50 000) / log ( 1 + 4.3 % )

N = 0.33022605266 × 360

N = 118.881378958 = 119 DAYS

By what percentage would the interest generated by

Teodomira's capital have increased if you had placed it in the
financial institutions you investigated?

Final Value Formula (FV )

VF = VA (1+ I )^ n

ROOT CRACK ( 4.4% )

VF = VA (1+ I )^ n

VF = 50 000(1+4.4%) ^1 = 52 200.00
Interest (generated by the new rate) = 52 200.00 - 50 000 = 2 200.00
Previous interest = 700
Final Interest = 2 200.00 - 700 = 1 500.00
To calculate the increased percentage we use:
PART / ALL X 100
1 500.00 / 700 x 100
214 .28 %
AZTEKA BANK ( 3.9% )

VF = VA (1+ I )^ n
VF = 50 000(1+3.9%) ^1 = 51 950.00
Interest (generated by the new rate) = 51 950.00 - 50 000 = 1 950.00
Previous interest = 700
Final Interest = 1 950.00 - 700 = 1 250.00
To calculate the increased percentage we use:
PART / ALL X 100
1 250.00 / 700 x 100
178 .57 %

CRAC ANDES (4.3%)

VF = VA (1+ I )^ n

VF = 50 000(1+4.3%) ^1 = 52 150.00
Interest (generated by the new rate) = 52 150.00 - 50 000 = 2 150.00
Previous interest = 700
Final Interest = 2 150.00 - 700 = 1 450.00
To calculate the increased percentage we use:
PART / ALL X 100
1 450.00 / 700 x 100
207.14 %