Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard
A 1-year loan of ₱260,000 has its 12% interest deducted in advance. What is the effective (true) interest rate on the money received?
- 12%
- 18%
- 12.64%
- 13.64%
Answer
D. 13.64%
Solution
Proceeds = ₱228,800. Effective rate = 31,200 ÷ 228,800 = 13.64%.
More Simple Interest and Profit/Loss questions
- A borrower signs a 9-month note for ₱170,000 at a bank discount rate of 10% (interest deducted in advance). How much does the borrower…
- In how many years will money double itself at 5% simple interest per year?
- A fruit dealer buys 53 crates of mangoes at ₱2,100 per crate. 25 crates spoil and are thrown away. The rest are sold at ₱4,770 per crate…
- Ivan deposited ₱55,000 in one bank at 5% and ₱72,000 in another at 9% simple interest. What is the average (overall) rate of return per…
- On ₱74,000 at 9% for 120 days, how much more is the ordinary interest (360-day year) than the exact interest (365-day year)?
- What amount must be invested now at 6% simple interest to have ₱31,000 after 4 years?
- A lender charges 10% simple interest PER MONTH. If Pia borrows ₱4,000 for 10 months, how much must be repaid in total?
- A bike was sold at a 15% loss. Had it been sold for ₱700 more, there would have been a 20% gain. What was the cost price?
- A manufacturer sells a fan to a wholesaler at 25% profit, the wholesaler sells to a retailer at 10% profit, and the retailer sells to a…
- The cost price of 27 items equals the selling price of 25 items. What is the percent profit?