Is the discount over one year or the whole term (i.e. five years)?
1. A bank discounts a P125k loan due in 5 years at 12% simple discount. Find the equivalent simple interest.
2. What is the simple discount rate equivalent to 18% simple interest for 200days?
3. In availing discount, what interest rate is equivalent to 18% discount rate in 1year and 3 months?
4. A savings bank wishes to earn 17% simple interest in discounting notes. If the term of the note is 3 years and 9 months, what simple discount rate should be used?
5. A note was sold on Dec 15, 1999 to Ben manalo, who discounts the note at 9%. Find the proceeds of the sale.
6. A 120 day promissory note promises to pay P12k plus interest at 7%. It is discounted at 6.5% 50 days before maturity. Find the proceeds?
7. On oct 22, 1999, Jenny drew a note to the order of Rose promising to pay P25k plus 12% simple interest after 150 days. If Rosť sold the note to MDS bank on November 24,1999 at 15%, how much did she receive as proceeds?