PROBLEMS 1. What is the annual rate of interest if P265 is earned in four months on an investment of P15,000? Ans. 5.3% 2. A loan of P2,000 is made for a period of 13 months, from January 1 to January 31 the following year, at a simple interest rate of 20%. What future amount is due at the end of the loan period? Ans. P2.433.33 3. If you borrow money from your friend with simple interest of 12%, find the present worth of P20,000, which is due at the end of nine months. Ans. P18.348.62
PROBLEMS 1. What is the annual rate of interest if P265 is earned in four months on an investment of P15,000? Ans. 5.3% 2. A loan of P2,000 is made for a period of 13 months, from January 1 to January 31 the following year, at a simple interest rate of 20%. What future amount is due at the end of the loan period? Ans. P2.433.33 3. If you borrow money from your friend with simple interest of 12%, find the present worth of P20,000, which is due at the end of nine months. Ans. P18.348.62
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
Transcribed Image Text:PROBLEMS
1. What is the annual rate of interest if P265 is earned in four
months on an investment of P15,000?
Ans. 5.3%
2. A loan of P2,000 is made for a period of 13 months, from
January 1 to January 31 the following year, at a simple interest rate
of 20%. What future amount is due at the end of the loan period?
Ans. P2.433.33
3. If you borrow money from your friend with simple interest of
12%, find the present worth of P20,000, which is due at the end of
nine months.
Ans. P18.348.62
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 4 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