1. i) What is the future value of an investment of P200 for three months at a simpleinterest of 6.5 %? Specify the interest earned. ii) Knowing that the investment mentionedin the last problem was purchased from January 15 to March 5, 2005, focus the solutionusing a) exact simple interest and b) the Banker's Rule.2. A note having a face value of P1300 and bearing interest at 7.5% will mature in 110days. What is the maturity value?3. a) Calculate the interest rate applied in a loan of P1000 with repayment of P1100 andduration of 10 months. b) What is the monthly interest, daily interest, equivalent to theyearly interest found in a)?4. A man received a 30-day loan of P550 from the bank. The proceeds were P544.50. a)What was the discount rate applied? b) What are the monthly discount, daily discount,equivalent to the yearly discount found in a)?

note :- According to bartleby guidelines , if multiple questions are asked , then 1st question needs…

1. i) What is the future value of an investment of P200 for three months at a simple interest of 6.5 %? Specify the interest earned. ii) Knowing that the investment mentioned in the last problem was purchased from January 15 to March 5, 2005, focus the solution using a) exact simple interest and b) the Banker's Rule.

1. i) What is the future value of an investment of P200 for three months at a simple interest of 6.5 %? Specify the interest earned. ii) Knowing that the investment mentioned in the last problem was purchased from January 15 to March 5, 2005, focus the solution using a) exact simple interest and b) the Banker's Rule.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Question

1. i) What is the future value of an investment of P200 for three months at a simple
interest of 6.5 %? Specify the interest earned. ii) Knowing that the investment mentioned
in the last problem was purchased from January 15 to March 5, 2005, focus the solution
using a) exact simple interest and b) the Banker's Rule.
2. A note having a face value of P1300 and bearing interest at 7.5% will mature in 110
days. What is the maturity value?
3. a) Calculate the interest rate applied in a loan of P1000 with repayment of P1100 and
duration of 10 months. b) What is the monthly interest, daily interest, equivalent to the
yearly interest found in a)?
4. A man received a 30-day loan of P550 from the bank. The proceeds were P544.50. a)
What was the discount rate applied? b) What are the monthly discount, daily discount,
equivalent to the yearly discount found in a)?

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