4. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay at the end of 9 months? How about at the end of 1 year and 6 months? 5. A price tag of P150,000.00 is payable in 60 days. A 3% discount is offered if paid in 30 days. What is the rate of simple interest? 6. A man borrowed from a bank under promissory note that he signed in the amount of P60,000.00 for a period of 1 year. He received only P50,150.00 after the bank collected the advanced interest and an additional amount of P850.00 for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance?
4. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay at the end of 9 months? How about at the end of 1 year and 6 months? 5. A price tag of P150,000.00 is payable in 60 days. A 3% discount is offered if paid in 30 days. What is the rate of simple interest? 6. A man borrowed from a bank under promissory note that he signed in the amount of P60,000.00 for a period of 1 year. He received only P50,150.00 after the bank collected the advanced interest and an additional amount of P850.00 for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance?
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
Related questions
Question
NOTE: solve only 4 to 6.
Transcribed Image Text:SIMPLE INTEREST
2. R
t Hov
002
3.
he
period from January zu,SU tO NOvemoer zo Or
4. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much
will you pay at the end of 9 months? How about at the end of 1 year and 6 months?
5. A price tag of P150,000.00 is payable in 60 days. A 3% discount is offered if paid in 30
days. What is the rate of simple interest?
6. A man borrowed from a bank under promissory note that he signed in the amount of
P60,000.00 for a period of 1 year. He received only P50,150.00 after the bank collected
the advanced interest and an additional amount of P850.00 for notarial and inspection
fees. What was the rate of simple interest that the bank collected in advance?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
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
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education