6. Simple Interest A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 (pesos) for a period of one year. He received only P50,150 (pesos) after the bank collected the advanced interest and an additional amount of P850 (pesos) for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance?
6. Simple Interest A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 (pesos) for a period of one year. He received only P50,150 (pesos) after the bank collected the advanced interest and an additional amount of P850 (pesos) for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Answer the following simple interest problem using the provided formula ONLY. Show your complete solution.
6. Simple Interest
A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 (pesos) for a period of one year. He received only P50,150 (pesos) after the bank collected the advanced interest and an additional amount of P850 (pesos) for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance?
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