11. Mr. Jones borrows P2,000 for 90 days and pays P35 interest. What is his effective rate of interest? A. 7.0% В. 9.3% С. 11.7% D. none of these

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter5: Introduction To Business Expenses
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11. Mr. Jones borrows P2,000 for 90 days and pays P35 interest. What is his effective rate of interest?
A. 7.0%
B. 9.3%
C. 11.7%
D. none of these
12. Ms. Smith borrowed P125,000 at 11% stated rate of interest and was to pay back the loan in 24 monthly
payments. What is her effective rate of interest?
A. 10.56%
B. 18.96%
C. 21.12%
D. 22.00%
Transcribed Image Text:11. Mr. Jones borrows P2,000 for 90 days and pays P35 interest. What is his effective rate of interest? A. 7.0% B. 9.3% C. 11.7% D. none of these 12. Ms. Smith borrowed P125,000 at 11% stated rate of interest and was to pay back the loan in 24 monthly payments. What is her effective rate of interest? A. 10.56% B. 18.96% C. 21.12% D. 22.00%
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