(1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan was four and one-half years. a. If money accumulated at simple interest at a rate of 6%, what was the amount of the loan? b. If the annual rate of interest was 6% and interest was compounded annually, what was the amount of the loan?

(1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan was four and one-half years. a. If money accumulated at simple interest at a rate of 6%, what was the amount of the loan? b. If the annual rate of interest was 6% and interest was compounded annually, what was the amount of the loan?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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