A loan was made 3 years and ago 4 months at 6% simple interest. The principal amount of the loan has just been repaid along with P800 of interest. Compute the principal amount of the original loan. Answer: P = P4, 000 A merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the largest simple interest rate at which he could afford to borrow in order to pay cash? Answer. 21% In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30 days or 270 at the end of 120 days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120 days. Answer: r = 32%
A loan was made 3 years and ago 4 months at 6% simple interest. The principal amount of the loan has just been repaid along with P800 of interest. Compute the principal amount of the original loan. Answer: P = P4, 000 A merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the largest simple interest rate at which he could afford to borrow in order to pay cash? Answer. 21% In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30 days or 270 at the end of 120 days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120 days. Answer: r = 32%
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
Related questions
Question
- A loan was made 3 years and ago 4 months at 6% simple interest. The principal amount of the loan has just been repaid along with P800 of interest. Compute the principal amount of the original loan. Answer: P = P4, 000
- A merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the largest simple interest rate at which he could afford to borrow in order to pay cash? Answer. 21%
- In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30 days or 270 at the end of 120 days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120 days. Answer: r = 32%
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 3 steps
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT