Answer to Question #255291 in Economics for Sera

Question #255291

What is the simple discount for a car costing 880,000 pesos, is a present value of 950,000 pesos due at the end of 5 years.

Expert's answer

"PV = 950,000\/(1 + r)^5 = 880,000."

"(1 + r)^5 = 1.0795,"

1 + r = 1.0154,

r = 0.0154 or 1.54%.

Learn more about our help with Assignments: Economics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. A bank earns 3% interest per annum compounded monthly for an initial savings deposit of 100,000 peso
2. A yearly payment of 100, 000 pesos every end of each year starting at the end of 5 years for 10 year
3. a) Discuss how the economic, political-legal, and cultural environments affected Google’s
4. Qd= 3000 - 10p Qs= -1000 + 10p a) at what average monthly fee would demand equal zero
5. Qd= 3000 minus 10p Qs= -1000+10p
6. ANSWER THE FOLLOWING QUESTIONS1. What is the main product category or sector which is the most impor
7. The executor of a will has to distribute an inheritance of P28 000 to a sole beneficiary in equal mo