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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/

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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?

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

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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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