Discount Problems:

Show the solution of each.

1.) A loan of P50,000.00 that is due in 10 months at 12% interest is guaranteed by a post-
dated check. Four months later the check is sold at a discount of 15%.
Determine:
a) the face value (future value) of the check
b) the selling price of the check.

Answers: P55,000.00; P50,875.00

2.) Ms. Diana Prince issues a P150,500.00 post dated check payable in 180 days for a loan
earning 15% interest. If the check is redeemed at a discount for P141,470.00 after 60
days,
find
a) the amount of the loan;
b) the applied discount rate.

Answers: P140,000.00; 18%

3.) Engr. Barry Allen purchased a P100,000.00-note that is due in 12 months at 10% simple
interest. After five months, the note is sold to Engr. Hal Jordan who charged a discount
rate of 12%. Determine the price paid for the note.

Answer: P102,300.00

No answer