ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the simple annual effective rate of the bank loan?
ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the simple annual effective rate of the bank loan?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 41P
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ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000.
How much is the simple annual effective rate of the bank loan?
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