Question

A stereo set has a cash price of $1400. Under a hire purchase plan, a 20% deposit is required plus 12 monthly installment of $110 each month.
Calculate
(a) the deposit.


(b) the total monthly installment.



(c) the hire purchase cost on the stereo.



(d) how much could have been saved by paying cash.

Answer 1

Answer:

a.)Rs.280

b.)Rs 1320

c )Rs 1600

d.)Rs 200

Step-by-step explanation:

1400× 20% = Rs 280

110×12 = Rs 1320

280 + 1320 = Rs. 1600

1600 - 1400 = Rs 200

(Rs 200 have been saved by paying cash comparing to hire purchase plan )