you applied for a loanwith a bank and the Php80 000 was approved atan interest rage of 14%of which Php 11,200was deducted and youwere given a check ofPhp 68,800. Since youhave to pay the amountof Php 80 000 one yearafter, what then will bethe effective interestrate?

GIVEN, money received = 80000 money paid = 68800

Answered: you applied for a loan with a bank and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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you applied for a loan with a bank and the Php 80 000 was approved at an interest rage of 14% of which Php 11,200 was deducted and you were given a check of Php 68,800.Since you have to pay the amount of Php 80 000 one year after, what then will be the effective interest rate?