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Compute the effective interest rate of the loan

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Question - Short term Funds - PRINCESS Trading is engaged in the buying and selling of raw materials for sofa beds. The business is in need of funds to finance the operating activities of the business. The Partner Rural Bank is offering PRINCESS a loan of P500,000 for one year at 12% simple interest rate. Compute the effective interest rate of the loan.

Reference no: EM133101695

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