A debtor borrows P7,900 and agrees to pay P9,359 for his debt 3 years & 4 months from now. At what rate compounded monthly is he paying the interest?
A debtor borrows P7,900 and agrees to pay P9,359 for his debt 3 years & 4 months from now. At what rate compounded monthly is he paying the interest?
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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Transcribed Image Text:II. Formula: Finding Rate/Finding Time =m
-1₁
100
log
F
P
mlog(1+i)
1. A debtor borrows P7,900 and agrees to pay P9,359 for his debt 3 years & 4 months from
now. At what rate compounded monthly is he paying the interest?
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