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aivan3 [116]
3 years ago
5

John borrowed P15,000 for 2 years and 6 months, with simple interest at 9%. How much does he owe at the end of the time?

Business
1 answer:
Nonamiya [84]3 years ago
4 0

Answer:

18,375

Explanation:

I'm not sure what kind of currency P is, but the calculations should be the same as if they were dollars.

future value for simple interest = principal x interest rate x time = 15,000 x 9% x 2.5 years = 3,375 (interests only)

the total amount of interests + principal = 15,000 + 3,375 = 18,375

the difference between simple and compound interest is that when interests compounds, earned interest will start earning more interest themselves. While when calculating simple interest, interests only accumulate but do not earn any further interests. E.g. the future value of this debt using compound interest = 15,000 x 1.09²°⁵ = 18,606.19

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sunk cost

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In 2002, a Swedish home electrical appliance manufacturer decided to use the same advertising message wherever it advertised aro
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Global advertising -

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$2681.30 approx.

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