A ₱12,000 loan charges simple interest of 1% per month. How much interest is due after 6 months?
Correct answer: B. ₱720
Interest per month = 1% of ₱12,000 = ₱120. For 6 months: ₱120 × 6 = ₱720. Watch the time unit: here the rate is per month, so time is counted in months.
medium