Interest pmt on cash/carry

This has been killing me…in the examples for cash and carry arb in the CFA book, how do they calculate the interest pmt due in 1 year For example, on page 204 of book 5, EOC 1B: borrow $300 for 1 year at 5% Shouldnt you pay back $315 at T=1? They say you pay back $315.38 Where does that other $0.38 come from?

they must be compounding daily N = 360 I/Y = 5/360 PV = -300 PMT = 0 CPT FV = 315.38 I haven’t reviewed cash and carry in a while. Good reminder to do that soon.

300e^0.05 =315.38133 everything I saw in the text was continuously compounding, this seem to be in line