Mr. Reyes invested an amount of P13,900 divided in two different schemes A and Bat simple interest rate of 14% per annum and 11% per annum respectively. If thetotal amount of simple interest earned in 2 years be P3,508, what was the amountinvested in Scheme B?a. P6,400b. P6,500c. P7,200d. P7,500

We know the formula for Simple Interest = Principle x Rate /100 x time period Here total amount of…

Answered: Mr. Reyes invested an amount of P13,900…

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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This question is based on the following information: Each of the three independent investments below has a life of 10 years. The cost of capital for the 3 investments is 14%. The PV of an annuity of P 1 for 10 years at 14% is 5.216. Amount (O) Annual cash inflows (I) Net present value (NPV) Investment A P449,400 P 100,000 ? Investment B ? 70,000 13,800 Investment C 198,208 ? 36,512 The amount of investment for investment B isA. P 351,320B. P 351,230C. P 350,000D. P 315,320
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