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
Related questions
Question
- 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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education