After finishing an MS Structural Engineering, Alvin has set up a structural engineering consultation firm. He needs to buy a license for a computer software that will be used in the structural design. The license costs Php 95,000 and is likely to generate Php 37,500 per year. Since his current loans are excessive, no financial institution is interested in lending him any more money. He discussed the difficulty of raising the capital with his rich uncle who happens to be generous. His uncle agrees to lend him Php 95,000 at 4% simple interest provided Alvin pays him the interest annually on time. How much will Alvin earn annually by investing in the system after paying the interest to his uncle?
After finishing an MS Structural Engineering, Alvin has set up a structural engineering consultation firm. He needs to buy a license for a computer software that will be used in the structural design. The license costs Php 95,000 and is likely to generate Php 37,500 per year. Since his current loans are excessive, no financial institution is interested in lending him any more money. He discussed the difficulty of raising the capital with his rich uncle who happens to be generous. His uncle agrees to lend him Php 95,000 at 4% simple interest provided Alvin pays him the interest annually on time. How much will Alvin earn annually by investing in the system after paying the interest to his uncle?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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After finishing an MS Structural Engineering, Alvin has set up a structural engineering consultation firm. He needs to buy a license for a computer software that will be used in the structural design. The license costs Php 95,000 and is likely to generate Php 37,500 per year. Since his current loans are excessive, no financial institution is interested in lending him any more money. He discussed the difficulty of raising the capital with his rich uncle who happens to be generous. His uncle agrees to lend him Php 95,000 at 4% simple interest provided Alvin pays him the interest annually on time. How much will Alvin earn annually by investing in the system after paying the interest to his uncle?
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