Question

Peter buys a campervan costing £35000 + 20% VAT.
He pays a 50% deposit and then arranges to pay the remaining balance
in 20 equal monthly installments.
Calculate the amount paid each month by Peter.​

Answer 1

Answer:

1,050 Pounds per month for 20 months

Step-by-step explanation:

Peter buys a campervan costing £35,000 + 20% VAT.

He pays a 50% deposit and then arranges to pay the remaining balance in 20 equal monthly installments.

Calculate the amount paid each month by Peter.

35,000 x 1.20 =42,000 total cost of the camper van including 20% VAT.

42,000 / 2 = 21,000 Amount to be paid in monthly installments.

Since he is not charged interest, then his monthly payments would be:

21,000 / 20 =1,050 Pounds per month for 20 months