13. Mr. John dela Cruz borrowed money from a bank. He receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the following: a. simple interest rate; b. the corresponding discount rate or often referred to as “Bankers Discount”.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 21RQ: Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed...
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13. Mr. John dela Cruz borrowed money from a bank. He receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the following: a. simple interest rate; b. the corresponding discount rate or often referred to as “Bankers Discount”.

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