A man borrowed P2,000.00 from his friend and agreed to pay the at the end of 6 months. His friend discounted the loan and gave him P1,920.00 in cash.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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From problem 25, what was the rate of interest?

A. 4.17%
B.4.98%
C. 3.98%
D.3.15%


Problem 25:
A man borrowed P2,000.00 from his friend and agreed to pay the at the end of 6 months. His friend discounted the loan and gave him P1,920.00 in cash. What was the rate of discount?

 

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