MONEY MARKET AND RELATE) FINANCIAL INSTRUMENTS Scanned with CamScannerFINANCIAL MARKET: ‘und: fa mentals and Trends Money Market In the money market, it is ni itis not that the traded but instead the financial instruments cnet MONEY OF cashis bein exchange. These instruments are hi fae ° he les bein, i 2 T iahly liquid 9 Used in the characteristics close to cash or money. In the noe ey eomewhat have the have three fundamental characteristics which ares) ake the securities 1. _ Usually sold in large denominations: , 2. Low default risk; and me 3. _ Mature in one year or less from Original issue date, Most money market instruments mature in less than 4 months. Transactions in the Point of money market are not confined to one Information! -tlormation! singular location. Instead, the tra organize the purchasing and selling te iene securities among participants and close the | as early as 5,000 B.C. " transactions electronically. As a result, money | Metals were believed to market securities commonly have an active | De the first form of secondary market. An active secondary Hamichpere Wives market enables the parties to trade money | forne bast eS market instruments to cater to short-term financial needs. Money market instruments become a flexible tool as the parties may invest in these for short-term gains and convert it back to cash quickly once liquidity needs arise. In an accounting perspective, most money market instruments are considered as cash equivalents due to the fact that they mature (i.e. cash can be redeemed) within three months or less from the date of purchase. Most transactions in the money market are very large, hence, they are considered as wholesale markets. The required size of the transaction usually averts individual investors in directly participating in the money market. As a result, dealers and brokers execute transactions in the trading Tooms of brokerage houses and large banks to match Sti ae to sellers) with each other. Despite this limitation, | inane Le yan Nowadays can invest in the money market by joining fun Mostly using money market instruments. at it nts market for ee ee meas ole the money market to be the preferred aed again by the organization. excess funds up until such time they are nt intend to earn high Investors who place funds in the money market do not intent A mature secondary 85 | Scanned with CamScannerFINANCIAL MARKETS: Fundamentals ang Tren, Ms instead, investors look at the money mary returns for their money. ‘ll provide a slightly higher return as temporary investment ht 9 th banks. If investors bales hots on the money st conditions do not justify @ stock purchase or there my; prevailing aia st rate hikes impacting bonds, then they can, choos be possible intel erarket instruments in the meantime. Holding onto By invest in money ive option for investors as this does Not generate sh is a very expensi vn becomes an opportunity Cost to investors by me” return. Any oe mae fot earned by holding on to the cash, To jes bs Cee orney markets become a viable option to tempo ‘oppo y invest idle funds. sero plan their strategy to incur the lowest opportin, costs er wont fb have an easy source een to be able ton! icky if there are available investment Opportunites | at come but at ty werne time do not want to let go of potential irre come. AS a ren they invest in money market securities to fe ni hese objectives Financial intermediaries also use money market instruments to ati, investment requirements or deposit outflows. On the other hand, money markets offer a least expensive alternative for fund-demanders such as the government and financi intermediaries when they have short-term fund requirements. Fun demanders need to have funds quickly because the timing of cash inflons and outflows does not synchronize with each other. For businesses, timing of cash collections from revenue may not match when the business needs to pay its operating expenses. For the government, collection of revenue only comes at certain points of the year (tax payment deadlines) but expenses are incurred throughout the year. To resolve the need for funds as a result of the mismatch, these entities turn to money markets to oblain funds. Participants in the money market include the following * Bureau of Treasury. The bureau sells government secutites © i funds. Short-term issuances of government securities alo © government to obtain cash until tax revenues are collected. pee banks. Issues treasury securities; sells certificates! in be fa oe loans; offers individual investor accounts| © invest in money markets. Banks are the pi ; 'ssuer negotiable Certit rtficates i sate and repurchase agreements, cette fl pl Scanned with CamScannerds FINANCIAL MARKETS: Fundamentals and Tren ee re _ ir i ent ° Private Individual. These private individuals made their investm through money market mutual funds * Commercial Non-Financial institutions. These entities buy and sells money market securities to manage their cash i.e. to temporarily store excess funds in exchange of somewhat higher return and obtain short-term funds Investment companies. Trade securities on behalf of their clients. Makes a market for money market securities through maintaining an inventory of financial instruments that can be bought or sold. Investment companies help maintain liquidity of the money market Since they make sure that sellers can easily sell their securities when the need arises, © Finance / commercial leasing companies. These companies raise money market instruments i.e. commercial paper to lend funds to individual borrowers * Insurance companies. These are companies that invest in the money market to maintain liquidity level in case of unexpected demands most especially for property and casualty insurance companies. © Pension funds. Maintain funds in the money market as preparation for long-term investing in stocks and bonds. Need to maintain liquidity to meet obligations but since future obligations are likely expected, huge money market investments are not necessary. Money market mutual funds. These funds permit small investors (e.g. individuals) to invest in the money market by accumulating funds from numerous small investors to buy large-denomination money market securities. Financial Instruments it k for Financial Reporting rding to the Conceptual Frameworl (2018; ea is a resource controlled by the entity as a result of past d 5S d from which future economic benefits are expected to flow to ene Assets can be classified in terms of physicality: tangible and je entity. intangible assets. 87 | Scanned with CamScanneree sas and 7, Tenge Tangible assets are assets that have oa prpedtes and en be easily seen, touched or perceived by the bess sf oe 5 Value of tangle assets are based on its physical ape A peas t aNGible asso include buildings, equipment, machinery, lant plies, Intangible assets are identifiable assets that do Li have Physica, substance and usually represents a legal on lo re future econo benefit. Financial instruments (also called as livin eseats OF Securit are basically intangible as future economic benefit ta fe e form of a cla, to cash that will be received in the future. Financial instruments arg the main vehicle used for transactions in the financial market. For the pu of presentation in financial statements, financial instruments May be presented under cash equivalents or investments. Securities that are maturing within 90 days or less are classified under cash equivalenis Otherwise, they are classified under investments. Its category may: depend on the maturity of the instrument whether short term or long term but mog, instruments in the financial markets are classified short term or part of the current assets. But the recognition of these securities will depend on the intent of the investor for these instruments. There is a minimum of two parties involved in a financial instrument: ¢ the issuer; the investor. The issuer is the party that issues the financial instrument and agrees to make future cash payments to the investor. The issuing paty usually needs additional funds for investment to further grow ther business. On the other hand, the investor is the party that receives ad owns the financial instrument and bears the right to receive payments be made by the issuer. The investors usually have surplus funds that 2¢ Rot earning anything and are willing to bear some risk to earn somethin? from their surplus funds. From an accounting perspective, invest recognize financial instruments as an asset. ene Of issuance of the financial instrument, the issuer usvall faballs joe Of value (usually cash) from the investor. The f oe Tument then becomes the proof (hence, called as secu) luture claim of the investor from the issuer. : Financial i cial instruments have two main economic purposes: gl Scanned with CamScannerFINANCIAL MARKETS: Fundamentals and Trends Allows transfer of fund from entities with excess funds (investors) to entities who needs funds (issuer) for business purposes (e.g. to pay for tangible assets). Permit transfer of fund that allows sharing of inherent risk associated with the cash flows coming from tangible asset investment between the issuer and investor. Usually, the initial investor does not hold on to the instrument up until the time the issuer can make the payment. In such cases, investors trade their financial securities to other individuals or institutions who are willing to pay for their claim to future payment. Financial intermediaries also operate in the financial system, demand funds from “investors” and convert these to various financial assets that the general public is willing to buy. ‘As a result of these interlinked activities, claims of the final wealth holders. generally differ from the liabilities recognized by the issuers (final demanders of funds). Financial instruments that are used in the money market are discussed in this chapter while those that are used in the capital markets are presented in subsequent chapters. Types of Money Market Financial Instruments Money market Instruments take the form of short-term deposits, government securities, commercial papers and certificates of deposit which form part of the Philippine interest rate market. Money market instruments are governed by Philippine regulations and are influenced by market movements. Generally, these instruments are reported by the investors as part of their short-term investments or cash equivalents depending when these instruments were acquired. In cases that certain financial instruments were acquired more than 12 months before maturity it will reported under noncurrent assets except that the investor intended ‘o have it traded within the immediate reporting cycle. Treasury Bills fey Bills are government securities issued by the Bureau of Treasury Fie vee in less than a year. There are three tenors of aVs is based. . Ve day (2) 182-day (3) 364-day Bills. The number of the bills rie ° he universal practice around the world of ensuring that Yield rate, eve spe day. Treasury Bills are quoted either by their tnit. Treasury Bil e discount, or by their price based on 100 points per Management ills which mature in less than 91-days are called Cash it Bills (e.9. 35-day, 42-day), Being government securities, 891 Scanned with CamScannerFINANCIAL MARKETS: Fundamentals aNd Tre, iy these are no longer certificated (i.e. scripless) same with the practgg ~ Other countries such as China, Canada and USA. Banks that como.” the majority of the Government Security Eligible Dealers (GSED) big ,,* bills in the weekly auctions held by the Bureau of Treasury. The banks, they, resell the T-bills to investors. In 2020, the Philippine government issuegs 35-day until 3rd quarter of the year. Treasury bills have virtually zero default risk since the govern can always print more money that they can use to redeem these S€Curtgg at maturity. Risk of inflationary changes is als0 lower since the matuiy term is shorter. Market for Treasury bills is both deep and liquid, Deg, market means that the market has numerous different buyers ang Sellers while liquid market means that securities can be quickly traded at low transaction costs. Investors prefer to go toa deep and liquid Market sug as Treasury bills since there is only little risk that they will not be Able tp liquidate the securities when they prefer to. Government securities, particularly treasury bills, are the safeg. investment instrument in the market. Because they are backed by the fy taxing power of the government, they are practically default risk-free. While there may be market risks owing to changes in interest rates, these are an attractive investment vehicle since the safety of the investor's principal is assured. These are also marketable and highly liquid. They can be traded easily in the secondary market anytime the market is open. Interest rate is not explicitly stated in the Treasury bill; hence, interest is not actually paid by the government when they sell this security, Instead, treasury bills are issued at a discount (meaning lower price than the par value at maturity). The return realized by investors comes from the increase in the value of the securities (purchase price to the price upon maturity). This means that for a Php 1,000 Treasury will sold at 99, the investor only needs to pay Php 990 as their investment. Once they redeem the Treasury bill at maturity date, they will be able to collect the Php 1,000 Simply put, they had a return of Php 10 from this investment. _____ Treasury bills can be sold via two methods: auctions or competitive bidding and noncompetitive bidding. In auctions, the Bureau of Treas’! announces the quantity and type of securities that they will sell. Interested Parties give a bid offering and the Treasury accepts the highest bids. ™™ Treasury accepts the bids in ascending order of yield until the acce? bids reach the offering amount. Each accepted bid is awarded at tt? highest yield Paid to any accepted bid. gl Scanned with CamScannerFINANCIAL MARKETS: Fundamentals and Trends i In noncompetitive bidding, bidders only give the amount of ecurities that they want to buy. The Treasury accepts all noncompetitive bids. The price for all the securities under noncompetitive bids is set at the highest yield paid to any accepted competitive bid. In essence, non- competitive bidders still pay the same price that are paid out by competitive bidders. The main difference between the two methods is that competitive bidders may or may not receive allocation from the securities being sold while noncompetitive bidders are guaranteed to receive the securities. securitic When analyzing investments, investors often try to compare performance of financial instruments with each other. To address this, most investors look at percentages to be able to compare returns better. From the point of view of investors, the discount rate indicates how much return, in %, they can get from a particular security. The annualized discount rate for a non-interest-bearing security (like Treasury bill) is described in equation below: -B; 360 ‘Annualized Discount Rate = 22— Be , 30 Bu D Bv = __ Face Value or Market Value Bp = Purchase Price D = _ tenor or period in days For example, a Php 1,000 Treasury bill with a 91-day tenor can be purchased at 995. To compute the discount rate, we just need to substitute the above information in the formula: P1,000—P995_ 360 “Annualized Discount Rate = ————_> x P 1,000 91 . P5.00 | 360 Annualized Discount Rate = P1000 x re Annualized Discount Rate = 1.98% Another variation of the annualized discount rate is what we call the investment rate. The investment rate addresses two weaknesses of the discount rate. The first one is the use of face amount as the denominator. Since the investor will pay less than the face amount and the a1] Scanned with CamScannerFINANCIAL MARKETS: Fundamentals ang) ren ’ ns the cc 5 . it instrument, the comput security is sold as a Cees is the use of 360 davai ang & . al the return which also un See aaa veer eats te ne tment rate uses 965 days (58 Cues Ae ccurat Yt arma ‘The investment rate portray 6 accurate Tepreseniay the return. ‘avestor will earn from the security since it uses the a on, of how much an i he true intial investment in the comput’ nd t : a" vests ie emule for the annualized investment rate, ation, 9.3. — Br=Bp , 365 Annualized Investment Rate = Bp x z By = Face Value or Market Value Bp = Purchase Price M = number of days to maturity Using the previous example, the annualized investment rate is P1,000—P995_ 365 Annualized Investment Rate = — +o * a P5.00_ 365 Annualized Investment Rate = =>5=% > innualized Investment Rate = —ooe% “oy Annualized Investment Rate = 2.02% Treasury bills are also known to be very near to the definition of tisk-free asset. As a result, interest earned on Treasury bills are among te net ae market. Investors may find that earnings from Treasuy eee ee @ Sufficient to cover for changes in purchasing power ight by higher inflation. Treasury bills are mostly meant 2s % investment vehicle to tem ince il catch up with inflation. porarily store excess cash since it may hard Repurchase Agreement A repurchase a i is a seller/borrower of rcement (repo) is a contract where party cH ' ani y instrument will be repuce eeu MeNt Will agree to the buyer/lender that! price, Repurchase sorec@8€4 OF bought back on a later date at aN ments enable short-term funds to be tran’ ; al Scanned with CamScannerFINANCIAL MARKETS: Fundamentals and Trends ———————————— between financial or non-financial institutions, usually fanging from one- day to 3 to 14 days. Some repos can also range from one to three months. There are repos which are called open repos which do not have an indicative date of repurchase. Repos are a key component of the debt securities market that produces short-term cash or securities liquidity critical to price-making activity of fixed income dealers. Dealers of government securities commonly use repos to manage liquidity and take advantage of expected changes in interest rates. Dealers sell their securities to a bank with an accompanying repo agreement promising to buy the securities back at a specified future date. Essentially, repos are collateralized loans. In the Philippines, the government (through BSP) also uses repo to enforce monetary policy. The BSP purchases government securities from a bank with a commitment to sell it back at a specified future date at a predetermined rate. In effect, a repo transaction expands the level of money supply as it increases the bank’s level of reserves. Under a reverse repo, the BSP acts as the seller of government securities, thus, the bank's payment reduces its reserve account resulting in a contraction in the system’s money supply. For both repos, the BSP can only affect the level of money supply temporarily, given that the parties involved commit to reverse the transaction at an agreed future date. At present, the BSP enters into repo agreements for a minimum of one (1) day (overnight) for both repos and a maximum of 91 days and 364 days for repo and reverse repo agreements, respectively. Since repos are collateralized by the accompanying securities, these usually are treated as low-risk investments with low interest rates. While it is considered a secured instrument, a risk may still be inherent in the sense that there is a possibility that the seller/borrower may not buy back the instrument. Negotiable Certificates of Deposit Negotiable certificates of deposit are securities issued by banks which record a deposit made. The certificate indicates the interest rate and the maturity date of the deposit. Since maturity date is stated in the certificate, negotiable certificates of deposit are treated as a term security with a specific maturity date. It cannot be easily withdrawn by the depositor since it is different from a demand deposit account wherein money can : withdrawn upon demand of depositor. A certificate of deposit essorts d Testricts holders from withdrawing funds on demand. The concept behin¢ 93 | Scanned with CamScannerpeng having no access to liquidity. e of deposit is also classified ag : rument, ae Person or entity = i i i : lich, s the instrument upon maturity will receive the Principat Prerest, This feature allows negotiable coe 20 be purchaseg and seg between investors. Interest rates of C rah azo 2 outcome " negotiation between the depositor and t! e bank. parties shoutg ; .st rate of the CD. The interest rates o CDs are usualh caine evel wth other money market securities since it carries a | Negotiable certificat instrument. As a bearer inst ly at the lOW levg, of risk. Investors can buy or sell certificates of deposit up unt the instrument's maturity. Negotiable cDs may have a maturity Period between one to four months up to six months. However, there is less demand for CDs with longer maturity. Upon maturity, the bank shall pay the principal plus the interest to the investor who holds the CD. In the Philippines, the BSP allows and regulates the issuance of long-term negotiable certificates of deposits (LTNCD). LTNCD refers to interest bearing negotiable certificates of deposit with a minimum maturity of five years. LTNCD offers a higher return compared to regular time deposit accounts because of the long period that depositors will be unable to withdraw the money. In this case, LTNCD will be reported as noncurrent assets of the investor since the maturity is longer than 12 months. Commercial Paper Fundamentally, commercial papers are unsecured promissoy notes. Commercial paper may be short-term or long-term. Short tem commercial Paper means an evidence of indebtedness of any person wit ae “ three hundred and sixty-five (365) days or less. Long ee maturity ope aPer iS an evidence of indebtedness of any person wit 'y Of more than three hundred sixty-five (365) days. Since com 3 ; mercial papers large creditworthy corporations in Pers are unsecured, only larg i i i it tac commercial n issue this security. Lenders will no a high level ore {rom small companies since they are going {0 ass are issued directly othe oe Security is not secured. Commercial PF [2 commercial papers, Doser and usually, there is no secondary M™ te bearer needs cash oe sa may redeem commercial pape's # ' ‘eldom happens. gil Scanned with CamScanner2S USMals and Trends Nonbank corporations like financing compani _ commercial papers and use the proceeds to fund icons hea they issue their clients. Issuers often maintain a line of credits with banks to ee at packup for a commercial paper. The line of credits primarily for the Den as of the issuer of the commercial paper. If the issuer is not able to pay an maturing commercial paper, the bank will lend funds to the issuer to erst the latter to pay for the commercial paper. The availability of line of ai reduces the risk associated with commercial papers, hence, this reduces the interest rate. Banks usually extend the line of credit and agree to provide the loan in advance in case there is a need to Pay off the commercial paper. In exchange, the issuer pays a service charge in exchange for the line of credit. Issuers of commercial paper agree to pay the line of credit fee because this is lower versus paying interest on the commercial paper for an extended period of time. Commercial papers may either have a stated interest rate on its face or be sold at a discounted basis. In the Philippines, commercial papers are not required to register with SEC if they meet the following requirements: «Issued to not more than 19 non-institutional lenders e Payable to a specific person e Neither negotiable nor assignable and held on to maturity e Amount not exceeding Php 50 million. Otherwise, companies need to register with the SEC first prior to issuing any commercial paper. Banker’s Acceptances Banker's acceptances refer to an order to pay a specified amount of money to the bearer on a specified date. Banker's acceptances are often used to finance purchase of goods that have not yet been transferred from the seller to the buyer. Banker's acceptance is usually offered to importers and exporters. An acceptance is formed when a draft or a promise to pay is made by the bank's client and the bank then ultimately accepts, Promising to pay on behalf of the client. The bank’s acceptance of the draft translates to a promise to pay to whomever party presents it to the bank for payment. The client then gives the draft (i.e. banker's acceptance) to the vendor to finance the purchase. For example, Company A wants to buy a large piece of equipment from Company B for the first time. Since Company B does not have any 95 | Scanned with CamScannerFINANCIAL MARKETS: Fundament i N als ang: My experience that wi | establish the creditworthiness. of be reluctant to ship the equipment immediately because yetne, rience difficulty in collection afterwards. Company @ mo! Mi ie Company B for th may 4th reluctant to send money to Company for the same reason that Ka be not receive the equipment as promised. To help consume! transaction, banks may intervene through the issuance mek acceptance wherein it will lend its name and creditworthiness tothe Ike party, ie. Company A. Payiny Compay Banker's acceptances are usually payable to the beare this can be subsequently purchased and sold until it matures, acceptances are usually sold at a discount, similar to Treasury bits, Mata, dealers also facilitate the trading of banker's acceptances by Matcig prospective sellers and buyers. Interest rates on banker's Acceptances a usually low since default risk is very minimal. T. Hey Barkers Evaluating Money Market Securities As a finance person, you should be able to understand and evaluate which money market securities to invest in depending on te Purpose of the business. Money market securities may be evaluated based on the interest rates and liquidity. Interest rates are very relevant in deciding which money mate! Securities to invest since this dictates the potential return that cane received from the investment. Interest rates on the money market tend be relatively low as a result of the low risks associated with them and Short maturity period. Money market securities have a very deep mati thus, they are competitively priced. If you would notice, most mor! markt trlies carry the same risk profile and attributes, thus oe Security may ant 2 $8 substitute for each other. Hence, ia pati’ Supply an fee 3” interest rate that deviates from the at force it back ona forces in the market would ultimately come? itack to the average rate. Liquidity refers to h , wet Security into g low quick, efficient and cheap itis to 2" at sh. Treasury bills, that have a ready secondary et! Secondary market until it Matures, Fo investors that effort shall be cu Nets of commercial papers tend to hold the Sy IS reason, brokers may charge a highe! 7" ¢ wi on, y charge i Bae sant t0 liquidate its commercial paper sinc? "ts © look for potential buyers compared to tease | os Scanned with CamScannerFi INANCIAL MARKETS: Fundamentals and Trends that have buyers willing to purchase at short n market securities are typically short-term, money often preferred by investors who desire liquidity int liquidity where it did not previously exist. ©. Since most money market securities are tervention — providing Valuation of Money Market Securities Valuation of money market securities is important to determine at what amount an investor is willing to pay in exchange for a security. In some cases, investors need to give an amount as a bid to be able to buy securities. Money market securities can be valued using the present value approach. The interest rate used in the valuation shall reflect the required return from the instrument based on the investor's perceived risk. Investors may also use the prevailing interest rate in the market for the type of security being purchased. Equation below presents the valuation formula which is practically the present value formula. Sb Market Se ity Value = ———| arket Security Value = Sb = Face value of the security 1 = Interest rate n= __ Number of Periods For example, the face value of a one-year Treasury bill is at Php 1,000 with an annual interest rate of 3%. To compute the value of the Treasury bill, use the formula above. The face value which will be received upon maturity is Php 1,000. The interest rate will be 3% and the number Of periods is 1 (since it has a one-year maturity term) —_ P1,000 Market Security Value = T3960 Market Security Value = P970.87 1 This means that an investor is willing to pay Php 970.87 for a Php :000 Treasury bill based on the risks surrounding the instrument. In absolute terms, the investor will get return of Php 29.13 from this 'nvestment. Assume that another Php 1,000 Treasury bill with maturity term is aye th an annual interest rate of 4% is being evaluated. Assume 3 The value of said Treasury bill is computed as follows: 90 day. 97| Scanned with CamScannermN FINANCIAL MARKETS: Fundamentals ang 1 Fen a P1,000 Market Security Value = 4 9) Market Security Value = P990.10 The annual interest rate should be converted to match the 99. maturity term. Hence, the annual interest term of 4% shall be mutigg with 90 / 360 to get how much is the interest rate for the tenor oe security. In tis case, the interest rate tO De used is 1% which represer® the interest cost associated with the 90 days that the money is held he government. od ‘As a general rule, as the interest rate rises, the value of the security becomes lower. This means that the market risk increases thus the impact on the value of the securities also reduces. Scanned with CamScannerFINANCIAL MARKETS: Fundamentals and Trends ——— eae Money Market deals with the exchange of financial instrument that are practically short term or characterized as usually sold in large denominations, low default risk; and mature in one year or less from original issue date. Financial instruments are the main vehicle used for transactions in the financial market. Securities that are maturing within 90 days or less are classified under cash equivalents. Otherwise, they are classified under investments in the books of the company. Some common financial instruments in the money market are: (1) Treasury Bills or T-Bills which are government securities issued by the Bureau of Treasury which mature in less than a year; (2) Repurchase agreement also known as Repo is a contract where a party which is a seller/borrower of an instrument will agree to the buyerllender that the instrument will be repurchased or bought back on a later date at a higher price; (3) negotiable certificates of deposit are securities issued by banks with specified interest rate and the maturity date of the deposit; (4) Commercial papers are unsecured promissory notes and are issued directly to the buyer and usually; and (5) banker's acceptances refer to an order to pay a specified amount of money to the bearer on a specified date. * In determining the value of the marketable securities, the formula maybe used Market Security Value = —22— a+" The formula requires that the face value of the security (Sb) be divided by the interest rate + 1, adjusted exponentially by the Period (n). Annualized Discount Rate and Annualized Investment Rate maybe sed to determine the amount of return expected from the T-bill ceeemnen The annualized discount rate determines the return ee investment but assumes that each month with 30 days. thet eueee res Investment Rate is a yield to maturity calculation mat address the limitation of annualized discount rate and base the i over the real amount invested and its impact on 365 days. 99 | Scanned with CamScanner