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?
- ₱7,083.33
- ₱11,569.44
- ₱11,038.19
- ₱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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