PLEASE don't use excel for this. Show the solution with formula needed. SIMPLE INTEREST 1. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay at the end of 9 months? How about at the end of 1 year and 6 months?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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PLEASE don't use excel for this. Show the
solution with formula needed.
SIMPLE INTEREST
1. You owe P120,000.00 from a friend
that promise to pay 6% simple
interest. How much will you pay at the
end of 9 months? How about at the
end of 1 year and 6 months?
COMPOUND INTEREST
1. If the sum of P12,000.00 is deposited in
an account earning interest rate of 9%
compounded quarterly, what will it
become after 1 year? And what is the
effective rate?
2. An investment of P3,000,000.00 earns
interest of 9% compounded
continuously. What is the effective
rate of interest?
Transcribed Image Text:PLEASE don't use excel for this. Show the solution with formula needed. SIMPLE INTEREST 1. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay at the end of 9 months? How about at the end of 1 year and 6 months? COMPOUND INTEREST 1. If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded quarterly, what will it become after 1 year? And what is the effective rate? 2. An investment of P3,000,000.00 earns interest of 9% compounded continuously. What is the effective rate of interest?
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