ou borrow P 5,000.00 for one year from a friend at an interest rate of 18% compounded monthly instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the same money from the bank?

ou borrow P 5,000.00 for one year from a friend at an interest rate of 18% compounded monthly instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the same money from the bank?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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Question

You borrow P 5,000.00 for one year from a friend at an interest rate of 18%
compounded monthly instead of taking a loan from a bank at a rate of 18% per
year. How much lesser you will pay by borrowing the same money from the
bank?

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