Peter bought a motorcycle on an installment basis and has to pay P3,600 per month for 36 months with a 2.5% discount on prompt payment. How much will she pay each month if she pays on time?
Answer (1)
[tex]\text{Discount} = 3600 \times 0.025 = 90[/tex][tex]\text{Payment on time} = 3600 - 90 = 3510[/tex]The discount for prompt payment is found by multiplying the monthly payment (₱3,600) by the discount rate (2.5%). This gives a discount of ₱90. Subtracting this discount from the original monthly payment results in a reduced payment of ₱3,510 if paid on time.
