Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard
A borrower signs a 9-month note for ₱120,000 at a bank discount rate of 15% (interest deducted in advance). How much does the borrower actually receive?
- ₱120,000
- ₱133,500
- ₱102,000
- ₱106,500
Answer
D. ₱106,500
Solution
Discount = ₱120,000 × 0.15 × 9/12 = ₱13,500. Proceeds = ₱120,000 − ₱13,500 = ₱106,500.
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