Question

5. A television set is sale at P13,499 in cash or on installment terms, P2,500 each
month for the next 6 months at 9% compounded monthly. If you would be the
buyer what would you prefer cash or installment?​

Answer 1

Cash is always king. It will cost you more if you pay interest, but you may not have enough money to buy this very over priced $13,499 TV. I say shop around for a cheaper TV.

Answer 2

If I were the buyer, I would prefer cash payments to paying in instalment.

In order to determine which payment method I would prefer, I would have to determine the future value of the payment in instalment terms.

The formula for calculating future value = A (B / r)

B = [(1 + r)^n] - 1

P2,500 x (1.09^6 - 1) / 0.09 = P18,808.34

Paying in instalments is more expensive.

To learn more about future value, please check: https://brainly.com/question/14640433