On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr. B discounts the note at the bank whose discount rate is 6%. What does he receive?
On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr. B discounts the note at the bank whose discount rate is 6%. What does he receive?
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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- On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the
principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr.
B discounts the note at the bank whose discount rate is 6%. What does he receive? - A price tag of P 1200 is payable in 60 days but if paid within 30 days , it will have a 3% discount.
Find the rate of interest. - Discount 1650 for 4 months at 6% simple interest. What is the discount?
- Find the amount due at the end of 15 months whose present value is P 2, 000 at 5% simple
discount? - Compute the discount if P2, 000 is discounted for 6 months at 8% simple interest.
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