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  • Act1 Module4

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    Jennica Myka Inid
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    Jhon David wants to expand his bakery business and needs a ₱200,000 loan to finance the venture. He is considering three loan options with different interest rates: a) 23% interest compounded monthly, b) 18% simple interest, or c) 12% interest compounded quarterly. The document recommends that the 12% interest compounded quarterly (option c) is the best choice because it has the lowest interest rate, which is important for a loan that Jhon David needs to pay back over 3 years. A conclusion is provided that option c is the best choice.

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    gwrdhrehue

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    ACT1 MODULE4

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    Jhon David wants to expand his bakery business and needs a ₱200,000 loan to finance the venture. He is considering three loan options with different interest rates: a) 23% interest compounded monthly, b) 18% simple interest, or c) 12% interest compounded quarterly. The document recommends that the 12% interest compounded quarterly (option c) is the best choice because it has the lowest interest rate, which is important for a loan that Jhon David needs to pay back over 3 years. A conclusion is provided that option c is the best choice.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    12 views2 pages

    Act1 Module4

    Uploaded by

    Jennica Myka Inid
    Jhon David wants to expand his bakery business and needs a ₱200,000 loan to finance the venture. He is considering three loan options with different interest rates: a) 23% interest compounded monthly, b) 18% simple interest, or c) 12% interest compounded quarterly. The document recommends that the 12% interest compounded quarterly (option c) is the best choice because it has the lowest interest rate, which is important for a loan that Jhon David needs to pay back over 3 years. A conclusion is provided that option c is the best choice.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    INID, JENNICA MYKA G.

    II-C BSFM
    INVEMATH

    1. JHON DAVID would like to expand HIS BAKESHOP business. In order to finance this
    venture, HE needs ₱ 200 000, HE inquired for different financial institutions about loan
    grants that HE plans to pay in installment for 3 years. Listed below are some of the
    rates of interest of loan grants. Help JOHN DAVID decide which of these options is
    best. Why?
    • a. 23% compounded monthly

    • b. 18% simple interest


    • C. 12% compounded quarterly.

    I THINK THE SOLUTION NUMBER THREE IS THE BEST OPTION BECAUSE IN


    THIS PROBLEM WE ARE TALKING ABOUT LOAN SO WE NEED TO FIND THE
    LOWEST INTEREST BECAUSE THEY WANTED TO LOAN FOR 200,000.

    Note : show your solution and make a conclusion which options is really the best !

    icmPhD-TE05092018

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