Apply the concept of simple interest. 1. Find the proceeds of P 50 000 due at the end of 8 months if the discount rateis 10 %%?Answer;2. Find the discount interest if F = P14 000, d = 8% andt = 9 months.Answer:3. Discount (or find the present value of) P 20 000 for 150 days at a discount rate of 7%.Answer:

Answered: 1. Find the proceeds of P 50 000 due at…

Business

Finance

1. Find the proceeds of P 50 000 due at the end of 8 months if the discount rate is 10 %%? Answer;

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Related questions

Q: Compare simple interest to compound interest.

A: Answer: Simple interest: This is the fundamental type of interest in which interest is paid on the…

Q: Define Intrinsic value.

Q: 1. Upon the partnership's formation, the respective capital of partners John and Jones would be? 2.…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Explain compound interest.

A: Compound interest.

Q: Blossom Company incurred the following costs during the current year in connection with its research…

A: The research and development expenses are related to the expenditure incurred to designing the…

Q: Describe about the intuitive approach?

A: Supervisors regularly depend on models and intuition to make fast decisions. Intuitive decision…

Q: 9. Find the amount due on December 5, 2019, if the present value on October 5, 2019 is P 50 000 at…

A: Simple interest can be computed as follows: Simple interest=Present value×interest rate×time in…

Q: 9. Find the amount due on December 5, 2019, if the present value on October 5, 2019 is P 50 000 at…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is the essential concept in understanding compound interest?

A: Compound interest refers to the addition of interest amount to the principal. It is generally…

Q: 6. ABC bank charges 10 %% for discounting loans. If Aldrin agrees to repay P 55 000 after 7 months,…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Define the term realization principle.

A: Accounting: Accounting refers to the information system, where the economic activities of a…

Q: Prepare a journal entry for purchasing a AFS security for $150000.

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Want to know the answer using simple interest

A: Time value of money tries to impart the concept and importance of monies worth today as…

Q: hat are the factors being considered in computing for the simple Interest? State the simple…

A: The simple interest is an interest that is paid on the principal amount over the period. The simple…

Q: explain the term force of interest as used in interest theory.

A: interest : it is the compensation that the borrower of the capital pays to the lender for use of it.

Q: Explain how compound interest differs from simple interest.

A: Interest is the amount of money that a financial institution or money lender receives for lending…

Q: Define Simple interest.

A: Simple interest: The amount of interest computed on the principal amount for a time period at a…

Q: 2. Find the discount interest if F =P 14 000, d = 8% and t = 9 months. Answer:

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: what is a provable intrinsic value? can you give a example

A: Intrinsic value of a stock is its fundamental value. This is calculated by taking in to…

Q: Define Explicit Interest.

A: Explicit interest is the amount of interest paid by loan or in other words actual interest paid on…

Q: What is simple interest?

A: Interest is the amount a cash flow earns as a result of owning or investing a sum of money. It can…

Q: 10. If P 11 200 is the present value of P 13 700 due at the end of 16 months, find a. discount…

A: The conceptual formula used:

Q: What are the advantages of simple interest?

A: Simple Interest Simple interest refers to the amount of interest that is calculated only on the…

Question

Apply the concept of simple interest.

1. Find the proceeds of P 50 000 due at the end of 8 months if the discount rate
is 10 %%?
Answer;
2. Find the discount interest if F = P14 000, d = 8% andt = 9 months.
Answer:
3. Discount (or find the present value of) P 20 000 for 150 days at a discount rate of 7%.
Answer:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

Investment X offers to pay you $5,800 per year for eight years, whereas Investment Y offers to pay you $7,900 per year for five years. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round the final answers to 2 decimal places.) Calculate the present value for Investment X and Y If the discount rate is 5%. Investment X Investment Y Present value Investment X Investment Y 14 Calculate the present value for Investment X and Y If the discount rate is 15%. Present value M PA
8. What is the present value of $100,0 00 received in 30 days if the discount rate is 3.0% annually? (Use simple interest formula) 9. What is the future value of $50,000 earning 2.25% annually for 90 days? (Use simple interest formula)1
Please Provide Answer with calculation
Find the present value of the given future amount. $59,000 for 3 months at 5% simple interest What is the present value? $ (Round to the nearest dollar as needed.)
Suppose the interest rate is 3.6% b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? **round to the nearest cent**
Case 1. Given the down payment of P18,877 and annual payment of 28,657. The number of years is 20 years and Discount rate of 11%. Find the present value?
Want Correct Answer with calculation and explanation
If you borrow $500 for 6 months at 6% annual simple interest, how much must you repay at the end of the 6 months? PREVIOUS ANSWERS HARMATHAP 12 6.2.007. Find the future value if $7000 is invested for 5 years at 12% compounded annually. (Round your answer to the nearest cent.) Submit Answer DETAILS DETAILS HARMATHAP12 6.2.017. What is the compound interest if $43,000 is invested for 5 years at 8% compounded continuously? (Round your answer to the nearest cent.)
Compute the simple interest INT for the specified length of time and the future value FV at the end of that time. Round all answers to the nearest cent. You borrow $78,000 for 10 months at 0.03% per month. X INT = $ FV = $
Please help me answer Question 20. :(
What is the present value annuity due of RM4,500 with a 6 percent discount rate for 5 years? Select one: a. RM24,165.790 b. RM24,318.345 c. RM24,126.590 d. RM20,093.15
What is the present value of $3,000 received a. 10 years from today if the interest rate is 4% per year? b. 20 years from today if the interest rate is 8% per year? Question content area bottom Part 1 a. The present value is $enter your response here. (Round to the nearest cent.) b. The present value is $enter your response here. (Round to the nearest cent.)