Mr. Yusoph wants to buy a pair of shoes worth PHP10,500. He has the option of paying it today for PHP10,500 or buying them in installment where he has to pay a down payment of PHP4,000 today, and the balance will be paid in two equal payments of PHP4,000 each for the next two years.

Given an interest rate of 10%,which is the better option? Explain?

Answer rating: 100% (QA)

To determine the better option between paying in full today or availing the installment plan we need ... View the full answer