Annie buys a television set from a merchant who offers P 25,000.00 at the end of 2 months. Annie wishes to pay immediately and the merchant offers to compute the required amount on the assumption that money is worth 14% annual simple interest. What is the required amount?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Annie buys a television set from a merchant who offers P 25,000.00 at the end of 2 months. Annie wishes to pay immediately and the merchant offers to compute the required amount on the assumption that money is worth 14% annual simple interest. What is the required amount?

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