Question

luz paid P1,080 in interest on a P3,060 loan she got from the credit union. The term of the

loan is 3 years. Find the rate.

Answer 1

1) 3 years = 36 months.

2) P1,080 + P3,060 = P4,140 (total payment).

3) ${\dfrac{1,080}{4,140}} \approx 0.26$

4) Since P0.26 is 26%, then 26% is a total rate.

5) ${\dfrac{0.26}{36}} \approx 0.72$% - is a month rate.

Answer: 0.72%