A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 for a period of one year. He received only P50,150 after the bank collected the advanced interest and an additional amount of P850 for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance? 6.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
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6. A man borrowed from a bank under
a promissory note that he signed in
the amount of P60,000 for a period of
one year. He received only P50,150
after the bank collected the advanced
interest and an additional amount of
P850 for notarial and inspection fees.
What was the rate of simple interest
that the bank collected in advance?
Transcribed Image Text:6. A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 for a period of one year. He received only P50,150 after the bank collected the advanced interest and an additional amount of P850 for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance?
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