### Help Support Soapmaking Forum - Soap & Candle Forums:

#### beachgurl

##### Well-Known Member
Okay, I'm getting desperate .. peeved .. and frustrated. If anyone has finance knowledge and can help me figure this out, please help me. Here's the question and I'm not getting it (big Mencia duh duh duh duh)

"Assume that the annual interest rate on a six month U.S. T-bill is 5%. Calculate the annual interest rate on six month bills in Canada and Japan given the following spot rates: \$C.9510/US\$ .008199 yen/US%."

I think that my brain (or what few cells are left of it) are soon going to explode. I can't find anyone who can explain it to me!! I need some chocolate. Nobody in my class understands and the prof isn't good at explaining (it was way over my head).

#### digit

##### Well-Known Member
Could it be as simple as calc'ing the rate in USD and converting that amount to CAD and JPY?

Looks like the exchange rate of the day for that problem is 1JPY = 0.008199USD giving 1USD = 121.9660934JPY. I do not know sig number for decimals places in this particular app. And 1CAD = 0.9510USD making 1USD = 1.051524CAD.

Then again, I is no math wizzard. Run it by some of your classmates. Time for brainstorming.

Digit

:shock:

#### beachgurl

##### Well-Known Member
I know that I have to use the interest parity ratio which is

F for/dom over S for/dom = (1+R sub for)/(1 + R sub dom)

Never mind .. I think I just figured it out !!! You made me think logically. I have to put the forward rate (which isn't included in the problem) over the spot rate !!!!! The problem isn't workable .. I have to have the forward rate !!! Why do professors do tricky stuff like this ?? Whiskey tango foxtrot !! I owe ya digit.

#### digit

##### Well-Known Member
beachgurl said:
I owe ya digit.
Glad I could help, not sure how I did it though. That is where brain storming can really help. One thought builds on the other. I will send you bill........but be advised that brain jiggling ain't cheap.

It is similiar to when they give the information needed to derive the formula you need for solving the equation. I reckon the objective was to see if you understood the question well enough to know what was needed. I always got distracted when extraneous info is given. Give me a number or variable and I will use it in some way.

Hey, wanna balance my checkbook?

Digit

#### beachgurl

##### Well-Known Member
LoL ... I never have to worry about balancing my checkbook ... there's never any money in the account !! Yeah, if you ever need anything as far as a financial analysis, study of your cash flows, marginal analysis .. I'm there ... just don't make me do international finance ... lol

#### IanT

##### Well-Known Member
lol....aaaah i remember economics and finance......gooooooooooooood luck with that sweety lol... you lost me at the something over something else part lol...

makes my brain hurt just thinking about it ... (or are those just dead braincells trying to come back to life??)...

what year of college you in?

#### beachgurl

##### Well-Known Member
I'm in my senior year for my second B.S. .. I have my first degree in human resources management .. I don't want to leave the VA with a dime of my money

#### digit

##### Well-Known Member
IanT said:
makes my brain hurt just thinking about it ... (or are those just dead braincells trying to come back to life??)...
Need some help? My newest vocation is Brain Jiggling. But it will cost ya!

Digit