Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard

An appliance has a cash price of ₱170,000. On installment, the buyer pays 25% down and the balance plus 15% per year simple (add-on) interest in 18 equal monthly payments. How much is each monthly payment?

  1. ₱7,083.33
  2. ₱11,569.44
  3. ₱11,038.19
  4. ₱8,677.08

Answer

D. ₱8,677.08

Solution

Balance = ₱127,500. Interest = ₱127,500 × 0.15 × 18/12 = ₱28,687.50. Monthly = ₱156,187.50 ÷ 18 = ₱8,677.08.

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