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
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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.
Transcribed Image Text: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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