(1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan was four and one-half years. a. If money accumulated at simple interest at a rate of 6%, what was the amount of the loan? b. If the annual rate of interest was 6% and interest was compounded annually, what was the amount of the loan?
(1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan was four and one-half years. a. If money accumulated at simple interest at a rate of 6%, what was the amount of the loan? b. If the annual rate of interest was 6% and interest was compounded annually, what was the amount of the loan?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:(1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan
was four and one-half years.
a. If money accumulated at simple interest at a rate of 6%, what was the amount of the loan?
b. If the annual rate of interest was 6% and interest was compounded annually, what was the
amount of the loan?
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