A loan was made 3 years and ago 4 months at 6% simple interest. The principal amount of the loan has just been repaid along with P800 of interest. Compute the principal amount of the original loan. Answer: P = P4, 000A merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the largest simple interest rate at which he could afford to borrow in order to pay cash? Answer. 21%In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30 days or 270 at the end of 120 days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120 days. Answer: r = 32%

Simple interest is quite simple and there is no interest on interest and there is interest on…

Answered: A loan was made 3 years and ago 4…

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10P: The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new...

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A loan was made 3 years and ago 4 months at 6% simple interest. The principal amount of the loan has just been repaid along with P800 of interest. Compute the principal amount of the original loan. Answer: P = P4, 000
A merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the largest simple interest rate at which he could afford to borrow in order to pay cash? Answer. 21%
In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30 days or 270 at the end of 120 days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120 days. Answer: r = 32%

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