Plutus must make an P8,500 quarterly tax payment to the Bureau of Internal Revenue. He decides to borrow money from his company, Plutus’ Financing and repay the loan in 90 days. Given an 8.5% rate, compute for the (a) simple interest; and (b) compound interest. Use a 365-day year.

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 25DQ
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Plutus must make an P8,500 quarterly tax payment
to the Bureau of Internal Revenue. He decides to
borrow money from his company, Plutus’ Financing
repay the loan in 90 days. Given an 8.5% rate,
compute for the (a) simple interest; and (b)
compound interest. Use a 365-day year.
and
Transcribed Image Text:Plutus must make an P8,500 quarterly tax payment to the Bureau of Internal Revenue. He decides to borrow money from his company, Plutus’ Financing repay the loan in 90 days. Given an 8.5% rate, compute for the (a) simple interest; and (b) compound interest. Use a 365-day year. and
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