21. Using simple interest formula, determine the simple interest that will be paid on a P300,000.00 loan at an interest rate of 5% for the period March 3 to May 31. Note: The exact number of days from March 3 to May 3 is 61. This means that year will be 61/360 because there are 360 days in a year. Show computation.
21. Using simple interest formula, determine the simple interest that will be paid on a P300,000.00 loan at an interest rate of 5% for the period March 3 to May 31. Note: The exact number of days from March 3 to May 3 is 61. This means that year will be 61/360 because there are 360 days in a year. Show computation.
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter16: Working Capital Management
Section: Chapter Questions
Problem 8Q: Define each of the following loan terms, and explain how they are related to one another: the prime...
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Transcribed Image Text:21. Using simple interest formula, determine the simple interest that will be
paid on a P300,000.00 loan at an interest rate of 5% for the period March 3
to May 31. Note: The exact number of days from March 3 to May 3 is 61.
This means that year will be 61/360 because there are 360 days in a year.
Show computation.
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