In order to pay a baseball uniforms , a school takes out a simple interest loan forPhp20,000 for 7 months at a rate of 12%. a. How much interest must the school pay? b. Find the future value of the loan.
In order to pay a baseball uniforms , a school takes out a simple interest loan forPhp20,000 for 7 months at a rate of 12%. a. How much interest must the school pay? b. Find the future value of the loan.
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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Question
1. In order to pay a baseball uniforms , a school takes out a simple interest loan forPhp20,000 for 7 months at a rate of 12%.
a. How much interest must the school pay?
b. Find the future value of the loan.
2. A sum of $10,000 is invested at an annual rate of 8%. Find the balance in the account after 5 years subject to
a. quarterly compounding and
b. continuous compounding.
3. A Php1,000 , 9.5% Malugee Inc. bond has a semi-annual coupon rate of 15%, this matures after 6 years and the required rate of return is 8%. Find the bond price.
4. What is the price of share stock if dividends on a stock today is worth Php20 per share? Dividends are expected to grow at 4% per year . the required rate or return is 4.5%
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