It is the practice of almost all bank in the Philippines that when they grant a loan, the interest for 1 year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with the bank and the P80000 was approved at an interest rate of 14% of which P11200 was deducted and you were given ac check of P68800. Since you have to pay the amount of P80000 one year after, what then will be the effective interest rate?

Q: 3-82. Suppose that you have just borrowed $7,500 at 10% nominal interest compounded quar- terly.…

A: Quarterly nominal interest rate = 10% / 4 = 2.5% Number of quarters = 6 x 4 = 24

Q: Please show work

A: According to the question, an investment of $2,000 has made for 20 years at 8% per year. The amount…

Q: Suppose you start saving for retirement when you are 30 years old. You invest $5,000 the first year…

A: Cash Flow:Cash flow is the movement of funds over a certain time period into or out of a company's…

Q: Leon and Heidi decided to invest $2,500 annually for only the first seven years of their marriage.…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: What effective interest rate per year is equivalent to 17.6% per year compounded quarterly. (Give…

A: Here we calculate the interest rate per year compounded quarterly so the calculation of the…

Q: (1 point) A sum of $9500 is invested for the months of June and July at 7,8% simple interest. Find…

A: Principle(P)=$9500 r=7.8% Time=Months of june and july Days in June=30 Days in July=31 Time =31 days…

Q: In order to make CDs look more attractive than they really are, some banks advertise that their…

A: Simple vs Compound InterestWhen money is deposited into an account at a simple interest rate,…

Q: On January 1, 2020, Engr. Merlin Capistrano opened an account at PNB Lopez with an initial deposit…

A:

Q: Elmo borrowed $30,000 from the Statler & Waldorf Bank at 12% APR, compounded monthly. The loam is to…

A: here we calculate monthly loan payment amount by following method as follow;

Q: 7. What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: Annual Withdrawal = 29263 started from end of 11 year withdrawal increase by 10% annually r = 10%