Solution: Compare how much money you will save or lose on the transaction.

(Last Updated On: December 8, 2017)

Compare how much money you will save or lose on the transaction.

Problem Statement: ME Board October 1996

You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. Compare how much money you will save or lose on the transaction.

  • A. You will pay P155.00 more if you borrowed from the bank.
  • B. You will save P55.00 by borrowing from your friend.
  • C. You will pay P85.00 more if you borrowed from the bank
  • D. You will pay P55.00 less if you borrowed from the bank.

Problem Answer:

You will pay P55.00 less if you borrowed from the bank.

Solution:

Latest Problem Solving in Engineering Economics (Simple & Compound Interest)

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Solution: Compare how much money you will save or lose on the transaction.
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