Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard
An appliance has a cash price of ₱80,000. On installment, the buyer pays 20% down and the balance plus 10% per year simple (add-on) interest in 24 equal monthly payments. How much is each monthly payment?
- ₱3,200
- ₱2,666.67
- ₱4,000
- ₱3,866.67
Answer
A. ₱3,200
Solution
Balance = ₱64,000. Interest = ₱64,000 × 0.1 × 24/12 = ₱12,800. Monthly = ₱76,800 ÷ 24 = ₱3,200.
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