1. A bank loan of Php1,900 is discounted at 11 % . If the loan is due in 120 days, how much is the proceeds?

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
Problem 1PS
icon
Related questions
Question

asap pls 

1. A bank loan of Php1,900 is discounted at 11 % . If the loan is
due in 120 days, how much is the proceeds?
2. What is the maturity value of a note that is discounted at 8% for
126 days if thpienakeisreceives Php20,023.20 as proceeds?
3. A note having a face value of Php16,000 was discounted at 8%. If
the discount was Php896, find the term of the loan in days.
4. A savings bank wishes to earn 17% simple interest in discounting
notes. If the term of the discount is 32
уears,
what simple
discount rate should be used?
Transcribed Image Text:1. A bank loan of Php1,900 is discounted at 11 % . If the loan is due in 120 days, how much is the proceeds? 2. What is the maturity value of a note that is discounted at 8% for 126 days if thpienakeisreceives Php20,023.20 as proceeds? 3. A note having a face value of Php16,000 was discounted at 8%. If the discount was Php896, find the term of the loan in days. 4. A savings bank wishes to earn 17% simple interest in discounting notes. If the term of the discount is 32 уears, what simple discount rate should be used?
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Effective Annual Rate Of Return
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education