9. A business loan of P500,000.00 is to be repaid in full after 2 years. What is the amount
to be paid if the effective rate of interest is 5%? ating
A. P 551,250.00
mbahet most not
B. P 561,250.000 euro 00.00
C. P 571,250.00
D. 581,250.00
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Answer:
Calculate:
Total P+I (A)
Where: A = P(1 + r/n)^(nt)
Principal (P): $ 500,000.00
Rate (R): % annual 5
Compound (n): Compounding Annually (1/Yr)
Time (t in years): 2
Answer:
A = $ 551,250.00
A = P + I where
P (principal) = $ 500,000.00
I (interest) = $ 51,250.00
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