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Solution: How much is the actual rate of interest?

(Last Updated On: December 8, 2017)

How much is the actual rate of interest?

Problem Statement: EE Board April 1996

A man borrowed P20,000 from a local commercial bank which has a simple interest rate of 16% but the interest is to be deducted from the loan at the time that the money was borrowed and the loan is payable at the end of one year. How much is the actual rate of interest?

  • A. 12%
  • B. 14%
  • C. 10%
  • D. 19%

Problem Answer:

The actual rate of interest is 19%.

Solution:

Solution: How much is the actual rate of interest?

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