Ruth borrowed P200,000.00 with 20% simple interest rate from ABC bank.At the time the money was borrowed, the interest was deducted. After a year, Ruthhas to pay P200,000.00. What is the actual interest rate?Assessment1) Compute the simple interest of P125,000.00 at 4% for 18 months.2) Compute the future value of P84,000.00 at 8 ½ % for 5 years.3) Find the simple interest rate of an initial amount of P76,000.00 for 3years with an interest of P5,700.00.4) If you are to lend money with simple interest, one with P146,050.00 at3.7% for 8 years and the other one with P164,400.00 at 2.8% for 9years, which one will earn more?5) How long will it take P6,000.00 to double at 10% simple interest?

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Ruth borrowed P200,000.00 with 20% simple interest rate from ABC bank. At the time the money was borrowed, the interest was deducted. After a year, Ruth has to pay P200,000.00. What is the actual interest rate? Assessment 1) Compute the simple interest of P125,000.00 at 4% for 18 months. 2) Compute the future value of P84,000.00 at 8 2 % for 5 3) Find the simple interest rate of an initial amount of P76,000.00 for 3 years with an interest of P5,700.00. 4) If you are to lend money with simple interest, one with P146,050.00 at 3.7% for 8 years and the other one with P164,400.00 at 2.8% for 9 years, which one will earn more? 5) How long will it take P6,000.00 to double at 10% simple interest? years.

Ruth borrowed P200,000.00 with 20% simple interest rate from ABC bank. At the time the money was borrowed, the interest was deducted. After a year, Ruth has to pay P200,000.00. What is the actual interest rate? Assessment 1) Compute the simple interest of P125,000.00 at 4% for 18 months. 2) Compute the future value of P84,000.00 at 8 2 % for 5 3) Find the simple interest rate of an initial amount of P76,000.00 for 3 years with an interest of P5,700.00. 4) If you are to lend money with simple interest, one with P146,050.00 at 3.7% for 8 years and the other one with P164,400.00 at 2.8% for 9 years, which one will earn more? 5) How long will it take P6,000.00 to double at 10% simple interest? years.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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