ariel lend his brother 8,700 pesos at 9% interest to be repaid for two months. how much is the interest and maturity value of ariels money after two months?
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ariel lend his brother 8,700 pesos at 9% interest to be repaid for two months. how much is the interest and maturity value of ariels money after two months?
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Answer:
The discussion of interest begins with the principle, or the initial amount in your account. This might be the first amount of an investment or the initial sum of a loan. In its most basic form, interest is computed as a percentage of the principal. For instance, if you borrow $100 off of a friend and agreed to payback this with 5% interest, the rate of interest you must pay is simply 5% of $100: $100(0.05) = $5. The overall sum you would return would be $105, which included the initial principle as well as interest.
Now in accordance to the problem given.
If the 9% interest is to be computed to the entirety of the money borrowed, regardless of the number of months the brother would pay, the interest to be credited is ₱783 , while maturity value is ₱9,483
8,700 (0.9)= 783
783+ 8,700 = 9,483
But if the 9% interest is to be added to the money lend by Ariel per month the the interest in two months would be ₱1,566 , while maturity value is ₱10,266
8,700 (0.9)= 783
783 x 2= 1,566
1,566+ 8,700 = 10,266
Hope this helps! <3 gelaijo
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