The purchasing engineer of a certain firm is to purchase a second hand truck for Php 75,000.00. A dealer offers a cash payment of Php 5000.00 and Ph 6486.00 per month for 12 months. Another dealer offered under the same condition with % interest per month for 12 months of the unpaid balance. Which offer should the engineer choose?

Answer: by trial and error, I = 0.0166

Second offer should be chosen with 0.75% charge