E Developing Mastery 1. Loans Between Banks. Pia is deciding to borrow money from a bank to start her small business and to pay her son's tuition fee. Php 100,000 is the ideal amount to be borrowed. BDO offers simple interest rate of 5% for 5 months while Chinabank offers simple interest rate of 4% for 7 months. a. Find the interest and maturity value from BDO. b. Find the interest and maturity value from Chinabank. c. Which is the better offer for Pia? 2. Bank Loan. Felipe earned Php 10,000 interest in 55 days from a short-term investment that paid 7.5% interest per year. Find the amount initially invested. 3. Investing in Bonds. Tin invested Php 5,000 in an exmutual fund containing bonds. Find the rate if she earned Php 375.50 in interest in 300 days. 4. Home Construction. Liza needs to borrow Php 500,000 for 1 year for materials needed to build her house. She can borrow from either of two banks. Interest charges from BDO would amount to Php 35,000, whereas interest charges from BPI would amount to Php 25,000. Find the interest rates associated with a loan from (a) BDO and (b) BPI. 5. Interest Rate. John must pay the bank Php 25,250 in interest 2500 days after making a loan of Php 75,000 to purchase hot air balloons. Determine the interest rate.
E Developing Mastery 1. Loans Between Banks. Pia is deciding to borrow money from a bank to start her small business and to pay her son's tuition fee. Php 100,000 is the ideal amount to be borrowed. BDO offers simple interest rate of 5% for 5 months while Chinabank offers simple interest rate of 4% for 7 months. a. Find the interest and maturity value from BDO. b. Find the interest and maturity value from Chinabank. c. Which is the better offer for Pia? 2. Bank Loan. Felipe earned Php 10,000 interest in 55 days from a short-term investment that paid 7.5% interest per year. Find the amount initially invested. 3. Investing in Bonds. Tin invested Php 5,000 in an exmutual fund containing bonds. Find the rate if she earned Php 375.50 in interest in 300 days. 4. Home Construction. Liza needs to borrow Php 500,000 for 1 year for materials needed to build her house. She can borrow from either of two banks. Interest charges from BDO would amount to Php 35,000, whereas interest charges from BPI would amount to Php 25,000. Find the interest rates associated with a loan from (a) BDO and (b) BPI. 5. Interest Rate. John must pay the bank Php 25,250 in interest 2500 days after making a loan of Php 75,000 to purchase hot air balloons. Determine the interest rate.
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
Related questions
Question
Topic: Simple and
Please answer all the given problems. Thank you.
Transcribed Image Text:E Developing Mastery
1. Loans Between Banks. Pia is deciding to borrow money from a bank to start her small business and to pay
her son's tuition fee. Php 100,000 is the ideal amount to be borrowed. BDO offers simple interest rate of 5%
for 5 months while Chinabank offers simple interest rate of 4% for 7 months.
a. Find the interest and maturity value from BDO.
b. Find the interest and maturity value from Chinabank.
c. Which is the better offer for Pia?
2. Bank Loan. Felipe earned Php 10,000 interest in 55 days from a short-term investment that paid 7.5%
interest per year. Find the amount initially invested.
3. Investing in Bonds. Tin invested Php 5,000 in an exmutual fund containing bonds. Find the rate if she
earned Php 375.50 in interest in 300 days.
4. Home Construction. Liza needs to borrow Php 500,000 for 1 year for materials needed to build her house.
She can borrow from either of two banks. Interest charges from BD0 would amount to Php 35,000, whereas
interest charges from BPI would amount to Php 25,000. Find the interest rates associated with a loan from
(a) BDO and (b) BPI.
5. Interest Rate. John must pay the bank Php 25,250 in interest 2500 days after making a loan of Php 75,000
to purchase hot air balloons. Determine the interest rate.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education