#### Problem Statement: CHAPTER 2 Interest and Money-Time Relationship

**Solved Supplementary Problem 2.10**

Mr. J. de la Cruz borrowed money from a bank. He received from the bank P1,342 and promises to repay P1,500 at the end of 9 months. Determine the simple interest rate and the corresponding discount rate or often referred to as the โBankerโs discount.โ

#### Problem Answer:

The rate of discount is equal to **10.53%** and the simple interest rate is equal to **11.77%**.

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More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

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