Engineering Board Exam Reviewer · Discount · medium

Find the discount rate if a P15,000 note yields proceeds of P14,250 after being discounted for 120 days.

  1. 15%
  2. 12%
  3. 18%
  4. 10%

Answer

A. 15%

Solution

D=15000-14250=750. d=D/Ft=750/15000(120/360)=750/5000=0.15=15%.

More Discount questions

  1. A borrower receives proceeds of P9,000 from a loan discounted at 10% for 1 year. Find the face value of the note.
  2. Find the equivalent simple interest rate corresponding to a simple discount rate of 10% for 1 year.
  3. A P50,000 note due in 90 days is discounted at a bank at 12% discount rate. Find the proceeds.
  4. A promissory note for P30,000 is due in 6 months. If discounted now at 9% simple discount, find the discount.
  5. A note for P10,000 is discounted at 8% simple discount for 90 days. Find the discount.
  6. For the note above (F=P10,000, D=P200), find the proceeds.
  7. A P20,000 note is discounted at 10% for 180 days. Find the proceeds.

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