O Interest Period O Discount Rate O Compounding Period Compounding Rate

Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter16: Working Capital Management
Section: Chapter Questions
Problem 8Q: Define each of the following loan terms, and explain how they are related to one another: the prime...
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24. Which of the following is the base unit of time over which an interest rate is calculated?
Interest Period
Discount Rate
Compounding Period
Compounding Rate
25. Simple interest of P1,235 is owed on a loan of P9,500 after four years and four months. What is
the annual interest rate?
2%
2.5%
3.5%
3%
Transcribed Image Text:24. Which of the following is the base unit of time over which an interest rate is calculated? Interest Period Discount Rate Compounding Period Compounding Rate 25. Simple interest of P1,235 is owed on a loan of P9,500 after four years and four months. What is the annual interest rate? 2% 2.5% 3.5% 3%
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