3. A business man wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified? 4. A P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at th e end of 75 days?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.7P
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3. A business man wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

4. A P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at th e end of 75 days?

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