Answered: If Reybien got a character loan of…

If Reybien got a character loan of P10,000 from a bank with 18 percent interest per annum, how much interest would he have paid in one year?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3CQQ

See similar textbooks

Related questions

Q: Suppose that the interest rate at which Joanne can borrow and lend is 10 percent per year, but she…

A: Future value is basically the value of a current asset at a future date based on a projected rate of…

Q: Find the present worth today in real value corresponding to the cur- rent values shown below for a 4…

A: Given that; Inflation rate = 4 % Interest rate = 4 % We subtract the inflation rate from the nominal…

Q: 9. A 10-year bond sells for its face value of $10,000, with an annual coupon of $250. Because of…

Q: At which interest rate is the present value of $145.80 two years from today equal to $125 today? Oa.…

A: here by using the present value method we calculate the interest rate which are as follow-

Q: You are offered to buy a 4 year coupon corporate bond at the beginning of its 7th month on its third…

A: Given: There is a coupon corporate bond for = 4 years Beginning of its 7th month on its third year…

Q: 10-year government coupon bond has a face value of $1,000 and a coupon rate of 5% paid annually.…

A: Time = 10 years Face value = 1000 $ Coupon rate = 5% or 50 $ annually Current rate = 6 % annually…

Q: What is your total rate of return on the investment, expressed as a percentage of the purchase…

A: Here I am using formula for calculating the total return on investment which we got 0.42%

Q: Suppose you buy a share of stock for $10 and sell it for $20; your profit is thus $10. If that…

A: Share of stock = $10 Selling price = $20 Therefore, the rate of return =100% If it takes 5 years,…

Q: Suppose a ten-year bond with a $10,000 face value pays a 5.0% annual coupon (at the end of the…

A: Given: The face value of the bond is $10,000 The annual coupon rate is 0.05(5%) Annual coupn…

Q: ADVANCED ANALYSIS To fund its wars against Napoleon, the British government sold consol bonds. These…

A: A perpetual bond , also called consol bond signifies a bond who yields a fixed amount of income for…

Q: 48. Suppose that a $1,000 face-value bond with a 5% coupon rate sells for $1,250. Wha is the yield…

A: Answer: Given, Face-value=$1,000Coupon rate=5%Coupon amount=1000×5100=$50Selling price of…

Q: d. Suppose that the Interest rate at whlich Joanne can borrow and lend is 10 percent per year, but…

A: Given: Per year earning after college = 35000 per year Directly goes to work after school then wage…

Q: In Figure 7.23, when the real interest rate is 6 percent, the quantity of loanable funds demanded is…

A: (B)

Q: Three students have each saved $1,000.each has an investment opportunity in which he or she can…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: You are considering taking out a two-year loan of$1,000 from a bank, on which you can pay…

A: Case 1 : Compound yearly interest Principal (P) = $1,000 Interest rate (r) = 1% Time period (t) = 2…

Q: Suppose you invested $94 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of…

A: Calculation of dividend yield: Dividend = 0.50, stock price = $95 =0.50/95 =0.52%

Q: For ten years, a man inherited a 100,000 endowment every three months. He may, however, elect to…

A: According to the question, Value of Principal = 100,000 Time period = 4 years compounded quarterly…

Q: cigarette vendor borrowed P2,000 and agreed to pay P3,000 after 25 days. What is the simple interest…

A: A cigarette vendor borrowed 2000 and agreed to pay 3000 after 25 days. Interest earned (I) = 3000 -…

Q: Bond A pays $8,000 in 20 years. Bond B pays $8,000in 40 years. (To keep things simple, assume that…

A: The interest rate is given as 3.5% The present value of the bonds can be calculated from the…

Q: A bond you are evaluating has a 10 percent coupon rate (compounded semiannually), a $ 1,000 face…

A: Given Bond face value = 1000 $ Time = 10 years Coupon rate = 10 % compounded semi annually Semi…

Q: At the end of 2007 a student has $200 in a bank savings deposit that is earning an interest rate of…

A: Given future worth(FW) = $400 Present worth(PW) = $200 Rate of interest (R)= 5% to calculate number…

Q: ran Lee plans to set aside $2,600 a year for the next seven years, earning 3 percent. What would be…

A: Investors can forecast the potential profit from various investments with differing degrees of…

Q: Suppose you are considering working at a local coffee shop 5 nights a week. You expect to save $125…

A: * SOLUTION :- From the given information the calculation is given below

Q: 4. A P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at th e…

A: Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple…

Q: What is the present value of the right to receive $11,000 in four years at an interest rate of 10.0…

A: Given information, Future value (F): $11,000 Time period (t): 4 years Interest rate (r): 10% To…

Q: savings in an account that pays an annual interest rate of 2%, a fraction 5/22 in an account that…

A: Answer in step 2.

Q: For each of the following pairs, which bond wouldyou expect to pay a higher interest rate?…

A: a) Risk and return are directly related. The higher the risk, the more would be the return. In this…

Q: Equities e. Suppose you are deciding between purchasing the two equities below, both of which are…

Q: a) Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest…

A: (a)Initial deposit = $350Interest rate = 6 percent per annumTime period = 4 yearsTo determine:…

Q: (a) You hold a consol that pays a coupon C in perpetuity. The current interest rate is i, and the…

A: (a) Given information: Current interest rate = i Coupon received in perpetuity = C The price of…

Q: Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…

Q: 1. If a certain machine undergoes a major overhaul now, its output can be increased by 20% - which…

A: * SOLUTION :- **According to the guidelines I answered 1st question only . 2nd question…

Q: the interest rate is 10 percent, the present value of an annual payment of $100,000 to be received…

A: The present value of perpetuity depends on the rate of interest or the discount rate.

Q: Pls help with below homework. You took an amazing class at the U that changed your life, so now you…

A: As per bartleby guidelines i only have to answer first question Answer in Step 2

Q: 2. A water resources project has benefits that equal $40,000 at the end of the first year and…

A: Given Benefit at the end of the first year A1 = 40,000 and benefit increases on a uniform gradient…

Q: Given demand and supply for loanable fund Market at given time period in the table below Real…

A: Given Interest rate Quantity of loanable fund demanded (billion $) Quantity of loanable fund…

Q: 1. Let r, s > 0 be interest rates. Below is a calendar of May 2022 which describes an interest rate…

A: * SOLUTION :- Given that ,

Q: 2.2 (LG 2.2) What principal amount will yield $150 in interest at the end of three months when the…

A: Answer: Simple interest is the interest calculated only on the principal amount in all periods. It…

Q: Exercise 2.3 at pg24: Say you barrowed $10,000 from a bank at 12% interest rate per year for a…

A: a)10,000*10=1,00,000 Interest 12% 1200*10=12,000 Therefore 1,00,000+12,000=1,12,000

Q: What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?…

A: Investment is any asset in which an investor invests in order to earn profit expecting increase in…

Q: 3.34 (LG 3.5) Gail has won a lottery that pays her $100 000 at the end of this year, $110 000 at the…

A: Present value is a concept that states that the value of money today is more valuable than the same…

Question

100%

If Reybien got a character loan of P10,000 from a bank with 18 percent interest per annum, how much interest would he have paid in one year?

a. P18,000

b. P1,800

c. P900

d. P180

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

When Andrew was 10 years old, his mother invested $50,000 to use for his college education seven years later. After seven years, how much money did Andrew have if the interest rate was 2 percent a year? A. $57,434.28 B. $50,357.00 C. $50,000.00 D. $43,528.01
What is the present value of $1.21 received at the end of two years if the interest rate is 10% and compounding is annual? a- 1.31 b- 1.21 c- 1.10 d- 1.00 Which of the following is a leading economic indicator? a- average prime interest rate charged by banks b- stock prices, 500 common stocks c- commercial and industrial loans outstanding d- industrial production
Jennifer bought jshares of Keester's Koverups for ndollars last year. Her stock rose in price and eventually would earn her 120% capital gain. She decided to sell half of her shares. Represent the capital gain earned on each of the shares that were sold algebraically. a. 1.2n b. 0.5n C. 120j d.0.5j
a) Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest rate is 6 percent. What is the future value of the $350 after 4 years? b) Suppose you are deciding whether to buy a particular bond from your local municipality. If you buy the bond and hold it for 4 years, then at that time you will receive a payment of $10,000. Assume the interest rateis6percent. Underwhatcircumstanceswillyoubuythebond?Meaninguptowhatpriceareyou willing to pay.
To pay off your student loan, you must pay $10,000 at the end of the year for the next three years. The interest rate is 5 percent a year. What is the present value of these payments? A. $30,000.00 B. $27,232.48 C. $8,638.28 D. $29,100.00
2. For ten years, a man inherited a 100,000 endowment every three months. He may, however, elect to receive a single lump sum payout at the end of the four-year period. If the cost of money is 14.06 percent compounded quarterly, how much is this lump sum?
Suppose Ted deposits $10,000 in a savings plan earning 5% compounded annually and Tess deposits $10,000 ina savings plan earning 10% compounded annually. Both leave their money on deposit for 40 years. Because Tess’srate is twice as great as Ted’s rate, is it true that Tess will earn twice as much interest? Explain why or why not.Then show calculations to prove your point of view. What is the future value for each investment? N i PV PMT FV 5 10
5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16%
Consider a 25-year loan with an annual interest rate of 7 percent and monthly payments of $1,201.53. The discount points charged by the lender at origination are 3 percent and the cost of borrower title insurance and mortgage insurance are, respectively, 0.5 percent and 2.0 percent of the loan amount. Additional fees paid to other third parties (i.e., not the lender) will equal $4,000. What is the loan amount? What is the lender’s yield/IRR? What is the effective borrowing cost (EBC)? USE EXCEL
1. A man borrows P2,000.00 from his friend on October 1, 2001 and promises to pay the principal and exact simple interest at 5% to discharge the debt on June 28, 2002 a. How many days will be charged with interest? b. How much does the man pay back his friend? 2. Find the present value of P2,000.00 due at the end of 8 months if the discount rate is 6%.
11.If you invest $1000 today, you expect to have $1460 at the end of 4 years. What rate of return do you expect to earn? 12. Brock Lee decided to sell his stock due to the recent market turbulence and instead put the entire amount of $100,000 into a savings account that promises to pay him annual compound interest of 4%. a. How much money will Mr. Lee accrue if he leaves it all in the bank for 1, 8, or 20 years? b.If Mr. Lee finds a different bank that promises to pay him 4% per year but compounds quarterly, rework part (a) using this new information.
(1) three year ago , meghan bought stock in GE for $25.69 per share . the stock is now worth $145.85 per share. there were no stock split. calculate the compaund annual growth rate for her investment (a) 178.4% (b) 76.3% (c) 82.99% (d) 78.39% (e) 43.9%