A college student borrowed P20,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P19200 after the bank collected the advance interest of P800. What was the rate of discount? What was the rate of interest?
A college student borrowed P20,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P19200 after the bank collected the advance interest of P800. What was the rate of discount? What was the rate of interest?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![• A college student borrowed P20,000 from a bank for his tuition
fee and promised to pay the amount for one year. He received
only the amount of P19200 after the bank collected the advance
interest of P800. What was the rate of discount? What was the
rate of interest?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5683742a-2e4a-4edd-bfc4-5e0cc9936c4e%2F67d7413b-86ae-44f4-ad30-8a6ad5281e12%2Focx5en_processed.jpeg&w=3840&q=75)
Transcribed Image Text:• A college student borrowed P20,000 from a bank for his tuition
fee and promised to pay the amount for one year. He received
only the amount of P19200 after the bank collected the advance
interest of P800. What was the rate of discount? What was the
rate of interest?
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