2. Alexander borrows P50,000 from Caden. Caden offers him two options for the interest: a. Ordinary interest with a rate of 3% for 600 days b. Exact interest with a rate of 3% for 684 days If Alexander will ask you now as his financial advisor, what option should he choose? Why?

2. Alexander borrows P50,000 from Caden. Caden offers him two options for the interest: a. Ordinary interest with a rate of 3% for 600 days b. Exact interest with a rate of 3% for 684 days If Alexander will ask you now as his financial advisor, what option should he choose? Why?

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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2. Alexander borrows P50,000 from Caden. Caden offers him two options for the
interest:
a. Ordinary interest with a rate of 3% for 600 days
b. Exact interest with a rate of 3% for 684 days
If Alexander will ask you now as his financial advisor, what option should he
choose? Why?

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