49) Find the interest on P5000 at 7% for 3 years.A. P11,666.67B. P10,500C. P2,142.86D. P1,05050) How much was borrowed if the interest at 12% after 4years is P6,000?A. P12,500B. P18,000C. P20,000D. P2000,000

49) Principal (P) = P 5000 r = 7% n = 3 years

49) Find the interest on P5000 at 7% for 3 years. C. P2,142.86 D. P1,050 A. P11,666.67 В. Р10,500 50) How much was borrowed if the interest at 12% after 4 years is P6,000? A. P12,500 В. Р18,000 C. P20,000 D. P2000,000

49) Find the interest on P5000 at 7% for 3 years. C. P2,142.86 D. P1,050 A. P11,666.67 В. Р10,500 50) How much was borrowed if the interest at 12% after 4 years is P6,000? A. P12,500 В. Р18,000 C. P20,000 D. P2000,000

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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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

49) Find the interest on P5000 at 7% for 3 years.
A. P11,666.67
B. P10,500
C. P2,142.86
D. P1,050
50) How much was borrowed if the interest at 12% after 4
years is P6,000?
A. P12,500
B. P18,000
C. P20,000
D. P2000,000

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