1. Accumulate 12,000 Pesos at 3 ½ % simple interest for 9 months. 2. An interest of 853.12 Pesos was paid on 7,500Pesos simple interest loan at the end of 1 yrar and 9 months. What was the rate of interest?

1. Accumulate 12,000 Pesos at 3 ½ % simple interest for 9 months. 2. An interest of 853.12 Pesos was paid on 7,500Pesos simple interest loan at the end of 1 yrar and 9 months. What was the rate of interest?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

Please answer this completely with solution. 1. Accumulate 12,000 Pesos at 3 ½ % simple interest for 9 months. 2. An interest of 853.12 Pesos was paid on 7,500Pesos simple interest loan at the end of 1 yrar and 9 months. What was the rate of interest?

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