Benchie borrowed P500,000.00 from a cooperative and agreed to pay the loan at the end of a month. The cooperative discounted the loan and gave him P450,000 in each. What is the rate of discount? a. 12% b. 15% c. 20%   d. 10%

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 7SCQ: If you receive 500 in simple interest on a loan that you made for 10,000 for five years, what was...
icon
Related questions
Question

Benchie borrowed P500,000.00 from a cooperative and agreed to pay the loan at the end of a month. The cooperative discounted the loan and gave him P450,000 in each. What is the rate of discount?

a. 12%

b. 15%

c. 20%
 
d. 10%
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Bond
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax