Question

A television set costs $350 cash. When bought on hire purchase, a deposit of $35 is required, followed by 12 monthly payments of $30. How much money is saved by paying cash

Answer 1

Given :

The cost of the television cost = $350

The money deposited for hire purpose = $35

The time period for monthly payment = 12

The monthly payment amount = $30

To Find :

The amount of money saved by paying cash

Solution :

∵ Total price of television = $350

∵ $35 is deposited as hire money

And  $30 each is deposited for 12 months

∴ Total deposited money = $30 × 12

                                          = $360

As The hire money deposited = $35

So, Total money spend on television = $360 + $35

                                                              = $395

Again

As The cost of the television set = $350

∴ The money saved by paying cash = Total money spend on television - cost of the television set

Or,  The money saved by paying cash = $395 - $350

                                                                = $45

Hence, The money saved by paying cash is $45     . Answer