owed P25,000 from a bank for a year through a promisory note= hen received only P21,915.00 after the bank collected the adv

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 12P
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5. Gilbert borrowed P25,000 from a bank for a year through a promisory note that he
signed. He then received only P21,915.00 after the bank collected the advance interest
and an additional P85.00 for notarial and inspection fee. What is the discount rate and
interest rate in this case?
Transcribed Image Text:5. Gilbert borrowed P25,000 from a bank for a year through a promisory note that he signed. He then received only P21,915.00 after the bank collected the advance interest and an additional P85.00 for notarial and inspection fee. What is the discount rate and interest rate in this case?
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