SOLUTION: Robert has P2,000 savings bond which will mature in 10 months. How much can he borrow today at a bank which charges 5½% simple interest so that the maturity value of the bond wil

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Question 1190427: Robert has P2,000 savings bond which will mature in 10 months. How much can he borrow today at a bank which charges 5½% simple interest so that the maturity value of the bond will liquidate the loan?
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
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Robert has P2,000 savings bond which will mature in 10 months.
How much can he borrow today at a bank which charges 5½% simple interest
so that the maturity value of the bond will liquidate the loan?
~~~~~~~~~~~~~~~~~ 

    2000 = X%2A%281%2B0.055%2A%2810%2F12%29%29


    12*2000 = X*(12+0.055*10)


    X = %2812%2A2000%29%2F%2812%2B0.55%29 = %2812%2A2000%29%2F12.55 = 1912.35 pesos.    ANSWER

Solved.

All formulas in my post are SELF-EXPLANATORY.