Ms. Maya Manaco has P2,500,000 to invest for a ear. She can lend it to his brother who has agreed o pay 10% simple interest for the year, or she can avest it with a bank at 8% compounded quarterly or a year. Which of the alternatives will yield a igher interest? By how much?
Ms. Maya Manaco has P2,500,000 to invest for a ear. She can lend it to his brother who has agreed o pay 10% simple interest for the year, or she can avest it with a bank at 8% compounded quarterly or a year. Which of the alternatives will yield a igher interest? By how much?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 10E
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Transcribed Image Text:Ms. Maya Manaco has P2,500,000 to invest for a
year. She can lend it to his brother who has agreed
to pay 10% simple interest for the year, or she can
invest it with a bank at 8% compounded quarterly
for a year. Which of the alternatives will yield a
higher interest? By how much?
**
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