Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard
An appliance has a cash price of ₱165,000. On installment, the buyer pays 25% down and the balance plus 6% per year simple (add-on) interest in 6 equal monthly payments. How much is each monthly payment?
- ₱20,625
- ₱28,325
- ₱21,243.75
- ₱28,118.75
Answer
C. ₱21,243.75
Solution
Balance = ₱123,750. Interest = ₱123,750 × 0.06 × 6/12 = ₱3,712.50. Monthly = ₱127,462.50 ÷ 6 = ₱21,243.75.
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