Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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Compute for SIMPLE DISCOUNT. 

Activity 2
Simple Discount
Solve the following. Show your solution.
1. Find the proceeds of P 50 000 due at the end of 8 months if the discount rate
is 10 %%?
2. Find the discount interest if F =P 14 000, d = 8% and t = 9 months.
3. Discount (or find the present value of) P 20 000 for 150 days at a discount
rate of 7%.
4. Accumulate P 50 000 for 3 years and 9 months at 7 2% simple discount.
5. How long will it take for P 20 500 to amount to P 30 000, if the discount rate is
5 4/5%?
6. ABC bank charges 10 4% for discounting loans. If Aldrin agrees to repay
P55 000 after 7 months, how much does he receive now?
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Transcribed Image Text:Activity 2 Simple Discount Solve the following. Show your solution. 1. Find the proceeds of P 50 000 due at the end of 8 months if the discount rate is 10 %%? 2. Find the discount interest if F =P 14 000, d = 8% and t = 9 months. 3. Discount (or find the present value of) P 20 000 for 150 days at a discount rate of 7%. 4. Accumulate P 50 000 for 3 years and 9 months at 7 2% simple discount. 5. How long will it take for P 20 500 to amount to P 30 000, if the discount rate is 5 4/5%? 6. ABC bank charges 10 4% for discounting loans. If Aldrin agrees to repay P55 000 after 7 months, how much does he receive now?
7. If P 25 000 is the present value of P 30 500 due at the end of 16 months, find
the discount rate.
8. Mary needs P 100 000 on June 12, 2018, and will settle the loan on February
12, 2019. What is the size of the loan she should borrow from Mr. Sotto who
charges 5% discount rate?
9. Find the amount due on December 5, 2019, if the present value on
October 5, 2019 is P 50 000 at 4% simple discount.
10. If P 11 200 is the present value of P 13 700 due at the end of 16 months, find
a. discount interest rate
b. simple interest rate
expand button
Transcribed Image Text:7. If P 25 000 is the present value of P 30 500 due at the end of 16 months, find the discount rate. 8. Mary needs P 100 000 on June 12, 2018, and will settle the loan on February 12, 2019. What is the size of the loan she should borrow from Mr. Sotto who charges 5% discount rate? 9. Find the amount due on December 5, 2019, if the present value on October 5, 2019 is P 50 000 at 4% simple discount. 10. If P 11 200 is the present value of P 13 700 due at the end of 16 months, find a. discount interest rate b. simple interest rate
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Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:9781285595047
Author:Weil
Publisher:Cengage