Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”?

Related Mcqs:

1. Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest?

   A. 12.19 %
   B. 12.03 %
   C. 11.54 %
   D. 10.29 %

2. A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount ?

   A. 3.67 %
   B. 4.00 %
   C. 4.15 %
   D. 4.25 %

3. 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. How much lesser you will pay by borrowing the money from the bank ?

   A. P 62.44
   B. P44.55
   C. P54.66
   D. P37.56

4. Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest ?

   A. 23.5 %
   B. 24.7 %
   C. 25.0 %
   D. 25.8 %

5. A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10% ?

   A. P1,549.64
   B. P1,459.64
   C. P1,345.98
   D. P1,945.64

6. A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan ?

   A. P 6,999.39
   B. P 6,292.93
   C. P 6,222.39
   D. P 6,922.93

7. Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 10% per annum. How much is in the account at the end of the 4th year ?

   A. P 4,880.00
   B. P 4,820.00
   C. P 4,860.00
   D. P 4,840.00

8. A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000?

   A. 28.33 %
   B. 29.17 %
   C. 30.12 %
   D. 30.78 %

9. One banker’s year is equivalent to ________________ days?

   A. 300
   B. 360
   C. 365
   D. 366

10. What refers to the amount of money paid for the use of borrowed capital ?

    A. Interest
    B. Rate of interest
    C. Simple interest
    D. Principal