Compute the annual interest, total interest and the amount to be received or paid at the end of the term for each scenario using a simple interest assumption: 1. You invested P28,000 in government securities that yields 5% annually for three years. 2. Your mother obtained a car loan for P900,000 with an annual rate of 12% for 5 years. 3. You deposited P10,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months.
Compute the annual interest, total interest and the amount to be received or paid at the end of the term for each scenario using a simple interest assumption: 1. You invested P28,000 in government securities that yields 5% annually for three years. 2. Your mother obtained a car loan for P900,000 with an annual rate of 12% for 5 years. 3. You deposited P10,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
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