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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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?

Simple Interest - only the principal earns interest.
where:
I = Pni
F= P + I
F = P + Pni
F = P(ltni)
I= interest
i= rate of interest
period
per
interest
n = number of interest period
P= principal or present worth
F = Future worth or
accumulated amount
Transcribed Image Text:Simple Interest - only the principal earns interest. where: I = Pni F= P + I F = P + Pni F = P(ltni) I= interest i= rate of interest period per interest n = number of interest period P= principal or present worth F = Future worth or accumulated amount
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