A man borrowed P20, 000.00 from a local commercial bank which has a simple interest of 16% but the interest is to be deducted from the loan at the time that the money was borrowed, and the loan is payable at the end of one year. How much is the actual rate of interest? a.i = 0.59 or 59% (actual rate of interest) b.i = 0.39 or 39% (actual rate of interest) c.i = 0.19 or 19% (actual rate of interest) d.i = 0.79 or 79% (actual rate of interest)
A man borrowed P20, 000.00 from a local commercial bank which has a simple interest of 16% but the interest is to be deducted from the loan at the time that the money was borrowed, and the loan is payable at the end of one year. How much is the actual rate of interest? a.i = 0.59 or 59% (actual rate of interest) b.i = 0.39 or 39% (actual rate of interest) c.i = 0.19 or 19% (actual rate of interest) d.i = 0.79 or 79% (actual rate of interest)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A man borrowed P20, 000.00 from a local commercial bank which has a simple interest of 16% but the interest is to be deducted from the loan at the time that the money was borrowed, and the loan is payable at the end of one year. How much is the actual rate of interest?
a.i = 0.59 or 59% (actual rate of interest)
b.i = 0.39 or 39% (actual rate of interest)
c.i = 0.19 or 19% (actual rate of interest)
d.i = 0.79 or 79% (actual rate of interest)
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