Suppose Jeric loaned from a bank the amount of 70,000 pesos and only received 68,600 pesos promising to pay after a year, a. Determine the interest rate. b. Determine the discount rate.

Corporate Fin Focused Approach
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ISBN:9781285660516
Author:EHRHARDT
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Chapter4: Time Value Of Money
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3. Suppose Jeric loaned from a bank the amount of 70,000 pesos and only received 68,600 pesos,
promising to pay after a year,
a. Determine the interest rate.
b. Determine the discount rate.
Transcribed Image Text:3. Suppose Jeric loaned from a bank the amount of 70,000 pesos and only received 68,600 pesos, promising to pay after a year, a. Determine the interest rate. b. Determine the discount rate.
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