An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for the next 18 months. If the interest rate is 6% compounded monthly, how much more is the total cost of the installment term compared to Its cash price? a. P10,564.65 b. P11,547.36 c. P7,890.50 d. P8,335.07

An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for the next 18 months. If the interest rate is 6% compounded monthly, how much more is the total cost of the installment term compared to Its cash price? a. P10,564.65 b. P11,547.36 c. P7,890.50 d. P8,335.07

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for
the next 18 months. If the interest rate is 6% compounded monthly, how much
more is the total cost of the installment term compared to its cash price?
a. P10,564.65
b. P11,547.36
c. P7,890.50
d. P8,335.07
с.

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