Jose owned Pedro the sum of P 5,000 due on Dec. 31, 1975 and P 6,000 due on Dec. 31, 1998. However Jose was unable to pay as agreed and was allowed to make a payment of P 8,000 on Dec. 31,2000 and a final payment of P 5,380 on Dec. 31, 2001. Determine the annual rate of interest on this payment?
Jose owned Pedro the sum of P 5,000 due on Dec. 31, 1975 and P 6,000 due on Dec. 31, 1998. However Jose was unable to pay as agreed and was allowed to make a payment of P 8,000 on Dec. 31,2000 and a final payment of P 5,380 on Dec. 31, 2001. Determine the annual rate of interest on this payment?
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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![Jose owned Pedro the sum of P 5,000 due on Dec. 31, 1975 and P 6,000 due on Dec.
31, 1998. However Jose was unable to pay as agreed and was allowed to make a
payment of P 8,000 on Dec. 31,2000 and a final payment of P 5,380 on Dec. 31, 2001.
Determine the annual rate of interest on this payment?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F118dd0ec-caf5-48c3-acdd-67212550c14e%2F94a91490-a4b8-45ea-a980-14654e03d4f7%2F1hpi0mo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jose owned Pedro the sum of P 5,000 due on Dec. 31, 1975 and P 6,000 due on Dec.
31, 1998. However Jose was unable to pay as agreed and was allowed to make a
payment of P 8,000 on Dec. 31,2000 and a final payment of P 5,380 on Dec. 31, 2001.
Determine the annual rate of interest on this payment?
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