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
A couple with three children are peacefully living in a barangay near the City proper. The husband is a government employee while the wife is a rug sewer. They always remind their children about this: "Bilhin and kailangan at huwag kailanganin ang hindi kayang bilhin". Because of this teaching, the children open a joint account to a certain cooperative to have a better investment. The total amount they earned in selling rugs, was put in their account in the cooperative to help their parents. Their total earnings amounting to P5,000.00 will earn an interest rate of 7.5% per year. Help them to compute for the simple interest earned and maturity value, if their money will be invested in 3 years?
Transcribed Image Text:Solve the following problems.
1. A couple with three children are peacefully living in a barangay near the City
proper. The husband is a government employee while the wife is a rug sewer. They
always remind their children about this: "Bilhin and kailangan at huwag kailanganin
ang hindi kayang bilhin". Because of this teaching, the children open a joint account
to a certain cooperative to have a better investment. The total amount they earned
in selling rugs, was put in their account in the cooperative to help their parents.
Their total earnings amounting to P5,000.00 will earn an interest rate of 7.5% per
year. Help them to compute for the simple interest earned and maturity value, if their
money will be invested in 3 years.
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