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Soloha48 [4]
2 years ago
12

I have invested for a loan of Php 5,000, and I need to repay in one lump sum at the end of one year. What annual interest rate c

orresponds to a lump-sum payment of Php 5,425?​
Mathematics
1 answer:
Brums [2.3K]2 years ago
8 0

Based on the information given, it can be deduced that the annual interest rate will be 8.5%.

Principal = 5000

Interest = 5425 - 5000 = 425

Time = 1 year

Rate = Unknown.

Simple Interest = PRT / 100

425 = (5000 × R × 1)/100

42500 = 5000R.

R = 42500/5000

R = 8.5%

In conclusion, the correct option is 8.5%.

Learn more about the interest rate on:

brainly.com/question/25767935

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