Ruth borrowed P200,000.00 with 20% simple interest rate from ABC bank. At the time the money was borrowed, the interest was deducted. After a year, Ruth has to pay P200,000.00. What is the actual interest rate? Assessment 1) Compute the simple interest of P125,000.00 at 4% for 18 months. 2) Compute the future value of P84,000.00 at 8 2 % for 5 3) Find the simple interest rate of an initial amount of P76,000.00 for 3 years with an interest of P5,700.00. 4) If you are to lend money with simple interest, one with P146,050.00 at 3.7% for 8 years and the other one with P164,400.00 at 2.8% for 9 years, which one will earn more? 5) How long will it take P6,000.00 to double at 10% simple interest? years.
Ruth borrowed P200,000.00 with 20% simple interest rate from ABC bank. At the time the money was borrowed, the interest was deducted. After a year, Ruth has to pay P200,000.00. What is the actual interest rate? Assessment 1) Compute the simple interest of P125,000.00 at 4% for 18 months. 2) Compute the future value of P84,000.00 at 8 2 % for 5 3) Find the simple interest rate of an initial amount of P76,000.00 for 3 years with an interest of P5,700.00. 4) If you are to lend money with simple interest, one with P146,050.00 at 3.7% for 8 years and the other one with P164,400.00 at 2.8% for 9 years, which one will earn more? 5) How long will it take P6,000.00 to double at 10% simple interest? years.
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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Transcribed Image Text:Ruth borrowed P200,000.00 with 20% simple interest rate from ABC bank.
At the time the money was borrowed, the interest was deducted. After a year, Ruth
has to pay P200,000.00. What is the actual interest rate?
Assessment
1) Compute the simple interest of P125,000.00 at 4% for 18 months.
2) Compute the future value of P84,000.00 at 8 ½ % for 5 years.
3) Find the simple interest rate of an initial amount of P76,000.00 for 3
years with an interest of P5,700.00.
4) If you are to lend money with simple interest, one with P146,050.00 at
3.7% for 8 years and the other one with P164,400.00 at 2.8% for 9
years, which one will earn more?
5) How long will it take P6,000.00 to double at 10% simple interest?
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