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This question was created from QUIZ NO. 8 Simple and Compound Interest.docx https://www.coursehero.com/file/52640992/QUIZ-NO-8-Simple-and-Compound-Interestdocx/

1. Lee paid an interest of P5000 on a 3-year loan at 8% simple interest.
a) What was the original loan?
b) How much did he pay at the end of the term?

Hi, please refer to the explanation section for detailed solution of the... View the full answer

a.Let L be the original loan amount that Lee had borrowed at 8% simple interest for 3 years. Hence,
In 1 year, interest amount on P 100 is P 8 So, in 3 years, interest amount on P 100 is (P 8 x 3)...

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