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1. Caden visits a bank and wanted to borrow some money to start for a printing press business. He has given two options: P50,000 at a simple interest rate of 10% for 3 years or P30,000 at a 5% simple interest rate good for 10 years. If he's going to ask you now, what options are you going to choose and recommend to him and why?

1. Caden visits a bank and wanted to borrow some money to start for a printing press business. He has given two options: P50,000 at a simple interest rate of 10% for 3 years or P30,000 at a 5% simple interest rate good for 10 years. If he's going to ask you now, what options are you going to choose and recommend to him and why?

FINANCIAL ACCOUNTING
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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1. Caden visits a bank and wanted to borrow some money to start for a printing press business. He has given two options: P50,000 at a simple interest rate of 10% for 3 years or P30,000 at a 5% simple interest rate good for 10 years. If he's going to ask you now, what options are you going to choose and recommend to him and why?
Transcribed Image Text:1. Caden visits a bank and wanted to borrow some money to start for a printing press business. He has given two options: P50,000 at a simple interest rate of 10% for 3 years or P30,000 at a 5% simple interest rate good for 10 years. If he's going to ask you now, what options are you going to choose and recommend to him and why?
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