Lucy Heartfillia buy a television set from a merchant who offers P25,000 at the end of 60 days. She wishes to pay immediately and the merchant offers to compute the required amount on the assumption that money is worth 14% simple interest. What is the required amount?

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
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Lucy Heartfillia buy a television set from a merchant who offers P25,000 at the end of 60 days.
She wishes to pay immediately and the merchant offers to compute the required amount on the
assumption that money is worth 14% simple interest. What is the required amount?
Transcribed Image Text:Lucy Heartfillia buy a television set from a merchant who offers P25,000 at the end of 60 days. She wishes to pay immediately and the merchant offers to compute the required amount on the assumption that money is worth 14% simple interest. What is the required amount?
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