In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30days or P270 at the end of 120days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120days?

In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30days or P270 at the end of 120days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120days?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: a perpetuity has a price of $750 and an annual interest payment of $35,

Q: Q3 rates and the period in which the X value is calculated and then calculate the X value. Draw the…

A: Note: As per the Bartleby Policy, we are restricted to answer the first question, Kindly post the…

Q: SITUATION1: Five hundred pesos (P500.00) is deposited monthly to an account earning 7% compounded…

A: This is calculated using the following formula:FV = P * (1 + r/n)n*twhere:FV is the future valueP is…

Q: Compute the interest rate if future value (FV) = $11461, present value (FV) = $3959, and number of…

A: Compound interest is the interest computed on the principal and the interest accumulated over the…

Q: If you give $1000 as a deposit for rent and it accumulates at 4% simple interest, how much money in…

A: $1000 is as deposit or securities for rent and it earns 4% simple interest . As long as tenant pay…

Q: You deposit $10,000 in a fund that pays compound annual interest equal to 3%. One year later the…

A: The nominal rate of interest which depicts the time value of money can be any declared interest…

Q: On March 25, you borrow some money for 120 days. What is the maturity date?

A: Remaining Number of Days in March - (31-25) = 6 Number of Days in April - 30 Number of Days in May…

Q: Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self-…

A: The net present value considers the entire cash flows in future whether positive or negative over…

Q: How can we compute the effective interest rate for any duration of time?

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

Q: a) Find the Future Value of an annuity for$1000 paid at the end of each year for 3 years assuming…

A: (a) Annuity = $1,000 Time = 3 years Interest rate = 7% Calculate the future value - Future Value =…

Q: An investor (owner) has an option to purchase a tract of land that will be worth $20,000 in ten…

A: Compound interest rate is one of the methods of calculating interest rate. It calculates the…

Q: To cover the cost of future expansion a company will save $5,000 a quarter for 8 years. What is the…

A: a. The future worth if interest is compounded monthly…

Q: A deposit of $20,000 is made in a savings account that pays a nominal interest of 3.5% compounded…

A: The future value of cash flow refers to the value of a sum of money or a series of cash flows at a…

Q: A person earning $50,000 annually wants to save money for a scholarship. He will save 15% of his…

A: Person's earning is 50000 per year and his salary increases 10% annually. And he saves 15% annually…

Q: If you borrow $12,000 at 20% interest rate for 5 years, what is your ordinary simple interest in…

A: Simple Interest refers to the money that is paid only on principal. Principal is the money that is…

Q: For a simple interest loan with interest rater (expressed as a decimal), the amount A due at the end…

A: Under simple interest, compounding is done on a fixed principal.

Q: Alfred desired 9,000 as the proceeds of a 90-day loan from B who charges 5% interest in advance.…

A: Given, Loan amount = 9,000 Time = 90 days Interest rate = 5%

Q: If P5,000 is invested for 10 years with an interest rate of 8%, compounded quarterly, what will the…

Q: You need to borrow $250,000 right now and can repay the loan in 9 months. Since you want to pay as…

A: Given; Amount needed to be borrowed= ₱250000 Time= 9 months Formula to calculate future value:-…

Q: How much must be invested now at 6% simple interest to accumulate $1,000 at the end of 5 years?…

A: Information extracted in the question: Simple interest = 6% Future value = $1000 Time = 5 years

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: ou borrow $5,000.00 and repay it back in monthly payments of $200.00 for three years. What is the…

A: Borrowed Amount = 5000 Monthly Payment = 200 n = 3 years

Q: If a bond with a normal value (N) of £100 and a coupon of 2.5% can be bought a a market price (P) of…

A: Given bond value = 100 Euros Counpon rate = 2.5 % = 2.5 % of 100 = 2.5 Euros Market price of bond =…

Q: Which of the following is the preferable interest rate for investing your money? (i) 12% Compounded…

A: Given: Interest rate (r)=12%

Q: Wou decide to place all your savings of $1,234 into a fund that has a modest annual interest rate of…

A: An annual percentage rate is expressed as an interest rate. It calculates what percentage of the…

Q: At 8% annual interest compounded monthly, how long will it take to become a millionaire if you…

A: The annual interest rate is 8%, compounded monthly The amount invested is $150,000 We have to find…

Q: A series of equal semi-annual payments of $1,500 for 3 years is equivalent to what present amount at…

A: here we calculate the present amount with compound semi-annually so the calculation as follow-

Q: o coupon bond will be worth $11,000 when it matures and is redeemed after 11 years. How much would…

Q: If you save $1,000 today and the annuel interest rate is 6%, what will that money be worth in 40…

A: Given, P = $1000 i = 6% t = 40

Q: Consider a student loan of $12,500 at a fixed APR of 9% for 30 years. a. Calculate the monthly…

A: Given, Loan = $12,500 APR = 9% Time = 30 years

Q: Sally purchases a perpetuity immediate with annual payments that pays $4000 toda and Payments…

A: Specifics of annual payment - Increases by 5% annually Paid for 6 years Let the payment in first…

Q: What is the interest rate that would make $10,000 received in the first year equivalent to $3,500…

A: The objective of this question is to find the interest rate that would make a lump sum of $10,000…

Q: A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If the annual coupon…

A: The annual coupon payment = $75 The last coupon paid = 61 days ago Accrued interest =?

Question

100%

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 with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

If your grandfather had deposited the money with a monthly interest of 1% instead of 12% per year, would your current money be more or less? Explain. (No Need to Calculate). Çok Satırlı Metin.
You want to borrow $1500 at 8% and you are willing to pay $210 in simple interest.How long can you keep the money
Show Full Solution At certain interest rate compounded quarterly, an amount worth P8000 will be P20000 after 5 yrs. How much would it be at the end of 10 years?
What interest rate is applied if P34000 becomes P87200 in 300 days?
Determine the present equivalent value of $400 paid over a period of 7 years in each of this situations: (a) The interest rate is 12% compounded annually (b) The interest rate is 12% compounded quarterly (c) The interest rate is 12% compounded continuously
Recently, a certain bank offered a 5-year CD that eams 2.58% compounded continuously. Use the given information to answer the questions. (a) If $10,000 is invested in this CD, how much will it be worth in 5 years? approximately $ (Round to the nearest cent.)
Your bank pays 2.6% interest per year You put S1,400 in the bank today and $550 more in the bank in one year How much will you have in the bank in two years? In two years, the amount that you will have is s (Round to the nearest cent)
Answer all parts of the economics problem
☐ Your company plans to buy a new vehicle, with a loan payment of $400 per month for 60 months. You estimate that the cost of gas will be $50 in the first month and increase by 1% each month. What is the present equivalent of the loan and gas costs for the vehicle over the 60 months of the loan, assuming an interest rate of 8%? Typed numeric answer will be automatically saved.
i need the answer quickly
How much can Sheila borrow on a credit card charging an APR of 17% over a period of 5 years if she wants to keep her payments to not exceed $300 every month end, if the credit card company compounds money on a daily basis?
Answer was not A or D