Answer the following simple interest problem using the provided formula ONLY. Show your complete solution. Simple Interest 1. If a man borrowed money from his girlfriend with simple interest rate of 12%, determine the present worth of 74, 900.00 pesos, which due at the end of seven months
Answer the following simple interest problem using the provided formula ONLY. Show your complete solution. Simple Interest 1. If a man borrowed money from his girlfriend with simple interest rate of 12%, determine the present worth of 74, 900.00 pesos, which due at the end of seven months
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer the following simple interest problem using the provided formula ONLY. Show your complete solution.
Simple Interest
1. If a man borrowed money from his girlfriend with simple interest rate of 12%, determine the present worth of 74, 900.00 pesos, which due at the end of seven months.
![Simple Interest - only the principal earns interest.
where:
I = Pni
F= P + I
F = P + Pni
F = P(ltni)
I= interest
i= rate of interest
period
per
interest
n = number of interest period
P= principal or present worth
F = Future worth or
accumulated amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6da5a9c1-ae6d-4461-91a9-77653a09a976%2Fb0b937e7-7121-4a23-82b7-b8898a8ae5b7%2Fl8jl92e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Simple Interest - only the principal earns interest.
where:
I = Pni
F= P + I
F = P + Pni
F = P(ltni)
I= interest
i= rate of interest
period
per
interest
n = number of interest period
P= principal or present worth
F = Future worth or
accumulated amount
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