A man bought a house and a lot worth P300000. The annual amortization of the house and lot is P34200. Determine rate of interest he was changed?
11.13%
To find the rate of interest charged for the house and lot, we can use the formula for annual amortization:
Annual amortization = Principal amount * Rate of interest
In this case, the principal amount is the worth of the house and lot, which is P300000, and the annual amortization is P34200.
Let's substitute these values into the formula:
P34200 = P300000 * Rate of interest
To find the rate of interest, divide both sides of the equation by P300000:
Rate of interest = P34200 / P300000
Now, let's calculate the rate of interest:
Rate of interest = 0.114 or 11.4%
Therefore, the rate of interest charged for the house and lot is 11.4%.
To determine the rate of interest the man was charged, we need to use the formula for calculating the annual interest rate:
Rate of Interest = (Annual Amortization / Total Value of the House and Lot) x 100
From the given information, we know that the annual amortization is P34200 and the total value of the house and lot is P300000.
Plugging these values into the formula, we get:
Rate of Interest = (34200 / 300000) x 100
To simplify the calculation, we can first divide 34200 by 300000:
Rate of Interest = (0.114 x 100)
Finally, we multiply the result by 100 to calculate the rate of interest:
Rate of Interest = 11.4%
Therefore, the man was charged an interest rate of 11.4% on the house and lot.