If Christine borrowed P 75 000 from the bank at aninterest rate of 3.5%, how much is the interest in 8months?A. 1500B. 1750C. 2 000Answer:If P 27 500 is the present value of P 30 000 due at the endof 18 months, find the discount rate.A. 5.56%B. 5.6%C. 5.75%Answer:How long will it take for P 150 000 to amount to P 180 575if the discount rate is 5%?A. 3 years, 4 months and 19 daysB. 3 years, 3 months and 19 daysC. 3 years, 4 months and 20 daysAnswer:

Solution 1: Interest in 8 months = P * R * T

Answered: If Christine borrowed P 75 000 from the…

If Christine borrowed P 75 000 from the bank at an interest rate of 3.5%, how much is the interest in 8 months? A. 1500 B. 1750 C. 2 000

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

See similar textbooks

Related questions

Q: Suppose you invest $103 nin a bank account, and five years later it has grown to $137.91. a. What…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: al 7 TRY: Lili borrowed P68000 with interest 72% at the end 12 years. What amount should be paid for…

A: FV = A × (1+r)n Where, Fv = future value A = Amount borrowed r = interest rate n = time period.…

Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6%…

A: Borrowed amount (PV) = P12000 Interest amount = P4650.70 Future value (FV) = 12000+4650.70 =…

Q: Mrs Shiirley Abundo borrowed 20, 000.00 at 7.5% compounded quarterly at a certain cooperative. How…

A: Here, Borrowed Amount is 20,000 Interest Rate is 7.5% Time Period is 2 year Compounding Period is…

Q: Rosa borrowed P32297 from a bank at 11.93% simple interest for 3 years and 6 months. How much did…

A: Simple interest refers to the interest that does not take into account the factors of compounding.…

Q: 1. A man was offered a landbank certificate with a face value of P 100,000 which is bearing an…

A: Here, Face Value of Certificate is P100,000 Coupon Rate is 6% Required Rate of Return is 8%…

Q: Suppose you invest $100 in a bank account, and five years later it has grown to $134.39. What APR…

A: Investment (P) = $ 100 Future value (FV) = $ 134.39 Period = 5 Years

Q: A person deposits 200.00 riyals at the end of each month for a year in a bank, and it has been found…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Ruth borrowed P200,000.00 with 20% simple interest rate from ABC bank. At the time the money was…

Q: Suppose you deposit $1,098.00 into an account 5.00 years from today. Exactly 14.00 years from today…

A: Following formula is used to compute account's interest rate account's interest rate = -1where,n =…

Q: Suppose you borrowed $3,000 at a rate of 8.8% and must repay it in 4 equal installments at the end…

A: Present Value = pv = $3000Rate of Retunr = r = 8.8%Number of Payment = n = 4

Q: 2) If you deposit $3 account balance How many yea

A: The question is based on the concept of Financial Management.

Q: 2. C savings deposit of P7,000 earns a simple interest of 5%. How much is the interest for 9 months?…

A: Deposit amount = P 7,000 Interest rate = 5% Period = 9 Months

Q: How much interest interest will be paid by Mr. Scusta Clee, if he borrowed Php515,515 at 3.25% after…

A: The interest earned on the already earned interest along with the principal amount is the compound…

Q: John Mojico invested her USD 20,000 in a BPI Time Deposit Account earning 2.8% simple interest for 2…

A: Simple interest is referred as the quick as well as easy method for the calculation of the interest…

Q: A. Aisha borrowed R.O 80,000 to pay her child’s education at Muscat College. Aisha must repay the…

A: Loan: It is the amount of money borrowed from a person or bank or company for a certain period…

Q: Suppose you deposit $1,181.00 into an account 5.00 years from today. Exactly 18.00 years from today…

A: Amount Deposited 5 years from today = $1,181Worth of Account 18 years from today = $1,800Time…

Q: Emily receives R1 500,00 from the bank now that charge 10,5% simple discount per annum. She has to…

A: To find the number of months after which Emily pays back the loan, we can use the formula for simple…

Q: 1. A friend borrows an amount of P1,000. In 4 years, the money become P2,500 compounded monthly.…

A: Borrowed amount = P 1000 Future value = P 2500 Period = 4 Years Period in months = 4*12 = 48 Monthly…

Q: 1. If you deposit OMR 32000 today in to a bank account that pays 4% interest compounded, how much…

A: 1. we need to calculate future value of OMR 32,000 after 5 years at 4% interest rate. so, future…

Q: how much should you deposit in a bank paying 2% compounded quarterly to accumulate an amount of…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay an amount every month…

A: Borrowed amount = P150,000 Time period = 2 years Rate = 6%

Q: Suppose you borrowed $15.000 at a rate of 11.1% and must repay it in 5 equal installments at the end…

A: Interest is the amount given by the borrower of money to the lender of money. Interest is usually…

Q: A man loan P 2,000 from the bank. How long would it take in years for the amount of the loan and…

A: Simple interest is the fixed amount of interest which is calculated by multiplying the interest rate…

Q: Pauline borrows a loan of 120000 for 3 years at 11.5% simple interest Calculate the total interest…

A: Workings: Calculation of monthly interest payment: Monthly interest…

Q: Bongani deposited R100 000 in the bank which offers 5,5% per annum simple interest.His intention is…

A: Deposit = 100,000 Interest rate = 5.5% Simple interest N = 4 years

Q: Mr. Isidro borrowed P1,150,000.00 for the purchase of his car. If his monthly payment is P25,000.00…

A: Formula: Yearly payment = Monthly payment x 12 Months

Q: Katy invests $12,000 into an account at an annual rate of 0.3% simple interest for 36 months. 1)…

A: The question is related to Time Value of Money. The Simple Interest is calculated with the help of…

Q: How much interest is deducted in advance from a loan of P18,000.00 for one year and 6 months if the…

A: Given Information : Amount of loan = P 18,000 Period of loan = 1 year 6 months = 1.5 years Discount…

Q: Mr. Sy borrowed money from a bank with an inferest of 6% compounded monthly for 10 years. His…

A: 6. Calculate the interest rate per conversion period by dividing the annual interest rate which is…

Q: Suppose you borrowed $20,000 at a rate of 9.2% and must repay it in 5 equal installments at the end…

A: We take loans to buy large ticket items like a car or a house. The loan is repaid using fixed…

Q: next 4 years, how much must you repay at the end of each year? O a. $3672 O b. $3384

A: PMT is defined as the payment per period or year, in order to compute this the number of years…

Q: If Xavier borrowed $3400 form a bank at simple interest rate of 4.5% for one year. How much interest…

A: Simple interest is interest calculated on the principal portion of a loan or the original…

Question

If Christine borrowed P 75 000 from the bank at an
interest rate of 3.5%, how much is the interest in 8
months?
A. 1500
B. 1750
C. 2 000
Answer:
If P 27 500 is the present value of P 30 000 due at the end
of 18 months, find the discount rate.
A. 5.56%
B. 5.6%
C. 5.75%
Answer:
How long will it take for P 150 000 to amount to P 180 575
if the discount rate is 5%?
A. 3 years, 4 months and 19 days
B. 3 years, 3 months and 19 days
C. 3 years, 4 months and 20 days
Answer:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Mrs Shiirley Abundo borrowed 20, 000.00 at 7.5% compounded quarterly at a certain cooperative. How much interest will be charge if she applies for a 2- year loan? What is the future value? a. 20,445.56 c. 39, 554.34 b. 28, 998.96 d. 30, 336. 24 What is the compound interest? a. 8,998.96 c. 5,996.56 b. 7,998.46 d. 4,338.55
I. Simple Interest Solve the following Problem 1. A man borrowed P45,000 from a lending institution at 8.5% simple interest. Find the interest and amount if the obligation is to be settled in: a. 1.5 years b. 30 months c. 2 years and 9 months 2. At what rate should P75,000 be invested in order to earn P5,100 interest in: a. 2.5 years b. 3.25 years c. 180 days 3. How long should P100,000 be invested at 8% simple interest in order to earn: a. P12,000 b. P16,000 c. P32,000
Ruth borrowed P200,000.00 with 20% simple interest rate from ABC bank. At the time the money was borrowed, the interest was deducted. After a year, Ruth has to pay P200,000.00. What is the actual interest rate? Assessment 1) Compute the simple interest of P125,000.00 at 4% for 18 months. 2) Compute the future value of P84,000.00 at 8 ½ % for 5 years. 3) Find the simple interest rate of an initial amount of P76,000.00 for 3 years with an interest of P5,700.00. 4) If you are to lend money with simple interest, one with P146,050.00 at 3.7% for 8 years and the other one with P164,400.00 at 2.8% for 9 years, which one will earn more? 5) How long will it take P6,000.00 to double at 10% simple interest?
Determine the interest to be deducted in advance if P 50 000 is due after 6 months with a discount rate of 6 1/2%. A. P1 625 B. P1 725 C. PI 825 Answer: Find the exact interest on P 105 000 at 5% simple interest for 90 days. A. PI 294. 50 B. P1 294. 52 C. P1 294. 54 Answer: Chichi borrowed P 50 000 from a bank. He paid an interest of P1 500 for 5 months, at what rate was the interest charged? A. 7.5% B. 7.2% C. 7% Answer:
Suppose that you borrow$ 12000 at interest rate of 5% per year. If you must be repaid the loan in equal end of year payments over the next 4 years, how much must you repay at the end of each year? O a. $3672 Ob. $3384 Oc. $2672 O d. $2384
If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months. What is the simple interest discount rate? A. 1.75% В. 1.74% С. 1.73% Answer:
A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple discount of 6% payable at once. How much must be barrowed? What is the rate of interest?
If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4 years. The amount of the annual payment is: Select one: а. $1169.85 b. $1400 c. $1313.9 d. $1240
Please Provide Answer with calculation
Find the discount if Marlon borrows P42,000 for 10 months at a simple interest rate of 15% per year. A. P5,250 B. P7,250 C. P36,750 D. P47,250
If you would like to invest money, which bank offer would you prefer if you do not plan to withdraw your money in 2 years? a. 5% simple interest per annum b. 4% compounded interest per annum c. 3% compounded interest semi-annually d. 2% compounded interest quarterly
Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded quarterly. If you want to know the total amount after 2 years, the value of interest rate (i) you should use in the F/P factor is: Select one: а. 3% b. 4 % с. 24% d. 12 %