Brothers Corporation borrows P70,000.00, annual interest rate of 19% is deducted in advance. What is the amount of proceeds the company will receive at the time of the loan and what is the effective interest rate choose the letter of the correct answer a. P13,300.00 and 19% b. P26,700.00 and 19% c. P13,300 and 23.5% d. P23,300.00 and 19% e. P56,700.00 and 23.5%

Brothers Corporation borrows P70,000.00, annual interest rate of 19% is deducted in advance. What is the amount of proceeds the company will receive at the time of the loan and what is the effective interest rate choose the letter of the correct answer a. P13,300.00 and 19% b. P26,700.00 and 19% c. P13,300 and 23.5% d. P23,300.00 and 19% e. P56,700.00 and 23.5%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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