Compute for the total interest and amount to be received or paid at the end of the term for each scenario using a simple and compound interest assumption. Don't forget to show the solution in the box provided. 1. Your mother invested Php 18,000 in government securities that yield 6% annually for two years. Solution: Year 1 Total Simple Interest: Total Amount: Solution: Total Compound Interest: Total Amount: 2. Your father obtained a car loan for Php 800,000 with an annual rate of 15% for 5 years. Solution:
Compute for the total interest and amount to be received or paid at the end of the term for each scenario using a simple and compound interest assumption. Don't forget to show the solution in the box provided. 1. Your mother invested Php 18,000 in government securities that yield 6% annually for two years. Solution: Year 1 Total Simple Interest: Total Amount: Solution: Total Compound Interest: Total Amount: 2. Your father obtained a car loan for Php 800,000 with an annual rate of 15% for 5 years. Solution:
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:Compute for the total interest and amount to be received or paid at the end of the
term for each scenario using a simple and compound interest assumption. Don't
forget to show the solution in the box provided.
1. Your mother invested Php 18,000 in government securities that yield 6% annually
for two years.
Solution:
Year |
1
Total Simple Interest:
Total Amount:
Solution:
Total Compound Interest:
Total Amount:
2. Your father obtained a car loan for Php 800,000 with an annual rate of 15% for 5
years.
Solution:
Total Simple Interest:
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