please show me a solution 4. A college freshman borrowed P2,000 from a bank for his tuition fee and promisedto pay the amount for one year. He received only the amount of P1,920 after thebank collected the advance interest of P80.00. What was the rate of discount?

Discounted loans are where the interest and other charges are charged on the face value and deducted…

Answered: 4. A college freshman borrowed P2,000…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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4. 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?