Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard
A borrower signs a 9-month note for ₱270,000 at a bank discount rate of 15% (interest deducted in advance). How much does the borrower actually receive?
- ₱270,000
- ₱239,625
- ₱300,375
- ₱229,500
Answer
B. ₱239,625
Solution
Discount = ₱270,000 × 0.15 × 9/12 = ₱30,375. Proceeds = ₱270,000 − ₱30,375 = ₱239,625.
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