1.A company obtained a short-term loan from a bank. Information about such loan is as follows:

Principal of loanP10,000,000

Stated interest rate10%

Terms1 year

If the loan is add-on interest, the effective rate is

Group of answer choices

10.00%

11.11%

9.09%

8.89%

2.Prodman has a machine that cost P50,000 and is fully depreciated is sold for P20,000. The proceeds from selling the old machine will be used as a down payment on the purchase of a new machine costing P80,000.Assuming a 30% tax rate, the out-of-pocket cost of the new machine is:

Group of answer choices

P60,000

P66,000

Answer not given

P80,000