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1. What is the (a) ordinary simple interest and (b) exact simple interest on P 1,000,000.00 invested at exactly four (4) years with an interest rate of 11%?

1. What is the (a) ordinary simple interest and (b) exact simple interest on P 1,000,000.00 invested at exactly four (4) years with an interest rate of 11%?

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
Problem 1PS
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1. What is the (a) ordinary simple interest and (b) exact simple interest on P 1,000,000.00 invested at exactly four (4) years with an interest rate of 11%? 2. Josh lend P 1,000.00 to Tim with a simple interest of 10% per year for the next five (5) years. Draw the cash flow diagram for Josh, where he received P 1,100 pesos on the 5th year. 3. Tim borrowed P 15,000.00 from Dave and will pay P 18,150.00 with a simple interest rate of 3% per annum. How many years did Tim borrowed the money from Dave? 4. Six (6) years from now, the value deposited in a bank is P 210,300.00. What is the deposited amount if the bank has an interest rate 0.25% per year compounded continuously? 5. Tim borrowed P 11,000.00 from Edward and will pay P 17,663.60 after 7 years. How much is the interest rate if the interest is compounding annually?
Transcribed Image Text:1. What is the (a) ordinary simple interest and (b) exact simple interest on P 1,000,000.00 invested at exactly four (4) years with an interest rate of 11%? 2. Josh lend P 1,000.00 to Tim with a simple interest of 10% per year for the next five (5) years. Draw the cash flow diagram for Josh, where he received P 1,100 pesos on the 5th year. 3. Tim borrowed P 15,000.00 from Dave and will pay P 18,150.00 with a simple interest rate of 3% per annum. How many years did Tim borrowed the money from Dave? 4. Six (6) years from now, the value deposited in a bank is P 210,300.00. What is the deposited amount if the bank has an interest rate 0.25% per year compounded continuously? 5. Tim borrowed P 11,000.00 from Edward and will pay P 17,663.60 after 7 years. How much is the interest rate if the interest is compounding annually?
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