Your family loaned in a lending institution which uses discount interest to cover the expenses for 2 months. Your parents grabbed the opportunity of being approved but not knowing the details of the transaction and the agreement. Since you have enough knowledge about the discount interest,here comes your role: to explain to your parents how discount interest works,and if
Your family loaned in a lending institution which uses discount interest to cover the expenses for 2 months. Your parents grabbed the opportunity of being approved but not knowing the details of the transaction and the agreement. Since you have enough knowledge about the discount interest,here comes your role: to explain to your parents how discount interest works,and if
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 37P
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Your family loaned in a lending institution which uses discount interest to cover the expenses for 2 months. Your parents grabbed the opportunity of being approved but not knowing the details of the transaction and the agreement. Since you have enough knowledge about the discount interest,here comes your role: to explain to your parents how discount interest works,and if the proceeds your family received was correct. Below are the details of the transaction.
Amount loaned: php 50,000.00
Term: 1 year
Discount interest rate:12%
Proceeds: php 45,000.00
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT