An appliance costs ₱18,000 in cash, or ₱2,000 down plus 12 monthly payments of ₱1,500. How much more is paid by instalment?
Correct answer: B. ₱2,000
Instalment total = ₱2,000 + 12 × ₱1,500 = ₱2,000 + ₱18,000 = ₱20,000. That is ₱2,000 more than the cash price. The extra amount is the cost of buying on credit.
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