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A dining set worth P 12,200 cash is purchased by a downpayment of P 5,800 and...

A dining set worth P 12,200 cash is purchased by a downpayment of P 5,800 and monthly payment of P 580 for 18 months. Find the rate of interest compounded monthly.

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Answer #1

Monthly Payment = P [r(1+r)n] / [(1+r)n-1]

n = 18

r = Monthly rate of interest

580 = 6,400 * {[r(1+r)n] / [(1+r)n-1]}

r = 6%

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