Answered: Determine the accumulated amount using…

Determine the accumulated amount using exact simple interest on P10,000.00 (pesos) for the period from January 20, 1990 to November 28 of the same year at 15% interest rate.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1MC: Principal plus interest equals ______ of a note. (a) discount (b) net proceeds (c) interest rate (d)...

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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

Answer the following simple interest problem using the provided formula ONLY. Show your complete solution.

3. Simple Interest

Determine the accumulated amount using exact simple interest on P10,000.00 (pesos) for the period from January 20, 1990 to November 28 of the same year at 15% interest rate.

Simple Interest - only the principal earns interest.
where:
I = Pni
F= P + I
F = P + Pni
F = P(ltni)
I= interest
i= rate of interest
period
per
interest
n = number of interest period
P= principal or present worth
F = Future worth or
accumulated amount

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