Mr. Gino loaned money from a loan company. He received an amount of P1,016 and guaranteed that he will pay back P1,250 to the loan company at the end of 9 months. What is the simple interest rate of the loan company and its corresponding discount rate?

Mr. Gino loaned money from a loan company. He received an amount of P1,016 and guaranteed that he will pay back P1,250 to the loan company at the end of 9 months. What is the simple interest rate of the loan company and its corresponding discount rate?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.2IP

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