On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr. B discounts the note at the bank whose discount rate is 6%. What does he receive?A price tag of P 1200 is payable in 60 days but if paid within 30 days , it will have a 3% discount. Find the rate of interest.Discount 1650 for 4 months at 6% simple interest. What is the discount?Find the amount due at the end of 15 months whose present value is P 2, 000 at 5% simple discount?Compute the discount if P2, 000 is discounted for 6 months at 8% simple interest.

Note : will answer first question as exact one is not specified. The question is based on the…

On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr. B discounts the note at the bank whose discount rate is 6%. What does he receive?

On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr. B discounts the note at the bank whose discount rate is 6%. What does he receive?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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Question

On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the
principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr.
B discounts the note at the bank whose discount rate is 6%. What does he receive?
A price tag of P 1200 is payable in 60 days but if paid within 30 days , it will have a 3% discount.
Find the rate of interest.
Discount 1650 for 4 months at 6% simple interest. What is the discount?
Find the amount due at the end of 15 months whose present value is P 2, 000 at 5% simple
discount?
Compute the discount if P2, 000 is discounted for 6 months at 8% simple interest.

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