A man borrowed P25, 000 from a bank for which he signed a promissory note to repay the loan at the end of one year. He only received the amount of P21, 915 after the bank collected the advance interest and an additional amount of P85.00 for legal fees. What was the rate of interest that the bank charged? 4.) P3-15 (Geodetic Engineering Board, August 1980 & February 1982)A man borrowed P25, 000 from a bank for which he signed a promissory note to repaythe loan at the end of one year. He only received the amount of P21, 915 after the bankcollected the advance interest and an additional amount of P85.00 for legal fees. Whatwas the rate of interest that the bank charged?

The interest charged by the bank would be the amount written on the promissory note less the legal…

A man borrowed P25, 000 from a bank for which he signed a promissory note to repay the loan at the end of one year. He only received the amount of P21, 915 after the bank collected the advance interest and an additional amount of P85.00 for legal fees. What was the rate of interest that the bank charged?

A man borrowed P25, 000 from a bank for which he signed a promissory note to repay the loan at the end of one year. He only received the amount of P21, 915 after the bank collected the advance interest and an additional amount of P85.00 for legal fees. What was the rate of interest that the bank charged?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Sunflower Manufacturing recently applied for a $10 million loan at The Democrat Federal Bank (known simplyas The Democrat). The purpose of the loan is to support its working capital needs (short-term funds) duringthe next nine months. Sunflower has been a loyal customer of the bank for many years and has beenextended whatever amount of credit it requested in the past.Sheli Crocker, who is a new, young loan officer at The Democrat, reviewed Sunflower's loan application anddecided to turn down the loan for the requested amount. In her report to Henry, her boss and the senior loanofficer, Sheli indicated that she thought Sunflower would have trouble repaying a $10 million loan because itsfinancial positions has deteriorated in recent months. Sheli noted that the company's ability to pay its currentobligation - that is, its liquidity position - is poor and that analysts are pessimistic about Sunflower's ability toimprove its liquidity during the next two years. As a result, Sheli…
Suppose you wish to borrow $800 for four weeks and the amount of interest you must pay is $20 per $100 borrowed. What is the arp at which you are borrowing money
1. What are the difference between Direct Method Cash flow withthat of indirect method cash flow, apply them in a given example
Jack received a $4,000 raise this year; this increased his salary as an associate television producer from $35,500 to $39,500. What percentage increase in nominal income did Jack receive? 14.6 percent 11.3 percent 10.1 percent 8.2 percent
SET B l. It is the practice of almost all banks in the Philippines that when they grant a loan. The interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the Php 80, 000 was approved at an Interest rate of 14% of which Php 11.200 was deducted and gou were given a check of Php 68. 800. Since you have to pay the amount of Php 80. 000 one year after. what then will be the effective interest rate?
Chelsea Menken works for a major consumer foods company earning $70,000 per year with about $57,600 in take-home pay. She rents an apartment for $1,200 per month. While in school, she accumulated about $37,000 in student loan debt on which she pays $385 per month. During her last fall semester in school, she had an internship in a city about 100 miles from her campus. She used her credit card for her extra expenses and has a current debt on the account of $8,000. She has been making the minimum payments on the account of about $240 a month. She has assets of $14,000. 1. Calculate Chelsea’s debt-to-income ratio. Round your answer to two decimal places.
What is the difference between Interest Accrued and Interest Expense? Can you give me a simple definition and example to understand this concept? Thank you.
The disposable income from your part-time job in 2019 was $18,800. In 2018, you borrowed $700 at 14 percent interest. You repaid your loan with interest in 2019. How much would you have available for spending in 2019? (Do not round intermediate calculations.)
If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay? (Please Include Equations used and cashflow diagram)
A man borrowed P20, 000.00 from a local commercial bank which has a simple interest of 16% but the interest is to be deducted from the loan at the time that the money was borrowed, and the loan is payable at the end of one year. How much is the actual rate of interest? a.i = 0.59 or 59% (actual rate of interest) b.i = 0.39 or 39% (actual rate of interest) c.i = 0.19 or 19% (actual rate of interest) d.i = 0.79 or 79% (actual rate of interest)
Show complete solution John Doe who plans to deposit $5,000 at the beginning of each year for the next seven years to save enough money for his daughter’s education. Please note that the ongoing rate of interest in the market is 5%. Determine the amount that John Doe will have at the end of seven years.
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10.45 million. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12.89 million. What was his annual rate of return on this sculpture?