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1. How much was borrowed if a simple interest rate of 7% was offered payable in 12 months with interest of P150.00?

1. How much was borrowed if a simple interest rate of 7% was offered payable in 12 months with interest of P150.00?

Essentials Of Investments
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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1. How much was borrowed if a simple interest rate of 7% was offered payable in 12 months with interest of P150.00? 2. A 1,000,000-trust fund was set up and to be used by an 8-year old nephew when he goes to college. In 8 years, how much will the fund be if the investment rate is 7.5% compounded quarterly? 3. Anna purchases a smartphone for P28,000. She makes a 15% down payment and agrees to repay the balance in 12 monthly payments. If the finance charge on the balance is 7.5%, estimate the annual percentage rate.
Transcribed Image Text:1. How much was borrowed if a simple interest rate of 7% was offered payable in 12 months with interest of P150.00? 2. A 1,000,000-trust fund was set up and to be used by an 8-year old nephew when he goes to college. In 8 years, how much will the fund be if the investment rate is 7.5% compounded quarterly? 3. Anna purchases a smartphone for P28,000. She makes a 15% down payment and agrees to repay the balance in 12 monthly payments. If the finance charge on the balance is 7.5%, estimate the annual percentage rate.
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