Engineering Board Exam Reviewer · Discount · hard

Find the equivalent simple interest rate corresponding to a simple discount rate of 10% for 1 year.

  1. 11.11%
  2. 10.00%
  3. 9.09%
  4. 12.00%

Answer

A. 11.11%

Solution

r=d/1-d=0.10/0.90 11.11%.

More Discount questions

  1. A P50,000 note due in 90 days is discounted at a bank at 12% discount rate. Find the proceeds.
  2. A promissory note for P30,000 is due in 6 months. If discounted now at 9% simple discount, find the discount.
  3. A note for P10,000 is discounted at 8% simple discount for 90 days. Find the discount.
  4. For the note above (F=P10,000, D=P200), find the proceeds.
  5. A P20,000 note is discounted at 10% for 180 days. Find the proceeds.
  6. Find the discount rate if a P15,000 note yields proceeds of P14,250 after being discounted for 120 days.
  7. A borrower receives proceeds of P9,000 from a loan discounted at 10% for 1 year. Find the face value of the note.

All Discount questions