document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1190416>Question 1190416</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Nerissa has the option of either paying her obligation of P10,500 today or settling it for P11,200 after 6 months. Find the simple interest rate at which she would be charged? </SPAN>\n" );
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document.write( "i = 11,200 - 10,500 = 700 is the amount of interest\r<BR>\n" );
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document.write( "P = 10500 is the amount loaned\r<BR>\n" );
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document.write( "t = 6 months = 6/12 = 0.5 year is the time value\r<BR>\n" );
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document.write( "Simple interest formula<BR>\n" );
document.write( "i = P*r*t<BR>\n" );
document.write( "700 = 10500*r*0.5<BR>\n" );
document.write( "700 = 10500*0.5*r<BR>\n" );
document.write( "700 = 5250*r<BR>\n" );
document.write( "r = 700/5250<BR>\n" );
document.write( "r = 0.1333\r<BR>\n" );
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document.write( "Answer: Roughly 13.33%<BR>\n" );
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