SALAMAT Bank offers you two investment plans. The first investment requires you to invest Php 12,000 which pays a simple interest of i1 per annum. On the other hand, the second investment requires you to invest Php 20,000 which pays an effective interest rate of 2.5% per annum. SALAMAT Bank promises that the total amount of the two investment plans after 3 years is Php 35,000. Find an expression for i1 and use the expression to approximate i1
SALAMAT Bank offers you two investment plans. The first investment requires you to invest Php 12,000 which pays a simple interest of i1 per annum. On the other hand, the second investment requires you to invest Php 20,000 which pays an effective interest rate of 2.5% per annum. SALAMAT Bank promises that the total amount of the two investment plans after 3 years is Php 35,000. Find an expression for i1 and use the expression to approximate i1
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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SALAMAT Bank offers you two investment plans. The first investment requires you to invest Php 12,000 which pays a simple interest of i1 per annum. On the other hand, the second investment requires you to invest Php 20,000 which pays an effective interest rate of 2.5% per annum. SALAMAT Bank promises that the total amount of the two investment plans after 3 years is Php 35,000. Find an expression for i1 and use the expression to approximate i1
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