please show me a solution 1. Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simpleinterest of 20% but the interest was deducted from the loan at the time the moneywas borrowed. If at the end of one year, she has to pay the full amount of P100,000,what is the actual rate of interest?

Gross loan (Par value) = P 100,000 Interest rate = 20% Period = 1 Year Interest amount deducted =…

Answered: 1. Engr. Trinidad loans from a loan…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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1. Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest?