Performance task No.2: SIMPLE INTERESTSDirections: Complete the table below. Show your solution on a separate sheet.1. Find the simple interest on a loan of P65,000 if the loan is given at a rate of20% and isdue in 3 years.2. Amparo invested a certain amount at 10% simple interest per year. After 2years, theinterest she received amounted to P3,000. How much did she invest?3. Miko borrowed P25,000 at 10% annual simple interest rate. How much should he payafter 3 years and 6 months?

1. Calculate the simple interest by the simple interest formula. Where 'P' refers to the principal…

Find the simple interest on a loan of P65,000 if the loan is given at a rate of20% and is due in 3 years. 1. Amparo invested a certain amount at 10% simple interest per year. After 2years, the interest she received amounted to P3,000. How much did she invest? 2. 3. Miko borrowed P25,000 at 10% annual simple interest rate. How much should he pay after 3 years and 6 months?

Find the simple interest on a loan of P65,000 if the loan is given at a rate of20% and is due in 3 years. 1. Amparo invested a certain amount at 10% simple interest per year. After 2years, the interest she received amounted to P3,000. How much did she invest? 2. 3. Miko borrowed P25,000 at 10% annual simple interest rate. How much should he pay after 3 years and 6 months?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 3P: Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of...

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Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
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Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
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