A man borrowed from a bank with a promissory note that he signed in the amount of P25000 for a period of one year. He received only the amount of P21915 after the bank collected the interest and additional amount of P8500 for notarial and inspection fees. What was the rate of interest that the bank collected in advance? O 13.64% 1452%
A man borrowed from a bank with a promissory note that he signed in the amount of P25000 for a period of one year. He received only the amount of P21915 after the bank collected the interest and additional amount of P8500 for notarial and inspection fees. What was the rate of interest that the bank collected in advance? O 13.64% 1452%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A man borrowed from a bank with a promissory note that he signed in the amount of P25000
for a period of one year. He received only the amount of P21915 after the bank collected the
interest and additional amount of P8500 for notarial and inspection fees. What was the rate of
interest that the bank collected in advance?
13.64%
14.52%
O 14.08%
16.34%
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