Question

Sarah buys a caravan.
The cost of the Caravan is £15,600 plus VAT at 20%
Sarah pays a deposit of £5,000
She pays the rest of the cost in 10 equal payments.

Work out the amount of each of the 10 payments.

Answer 1

Answer:

Cost 15600

Vat 3120

Total 18720

Deposit 5000

1372

Answer 2

The amount of each of the 10 payments is £1,372.

Step-by-step explanation:

Given:

The cost of the Caravan is £15,600 plus VAT at 20%.

Sarah pays a deposit of £5,000.

To Find:

The amount of each of the 10 payments.

Solution:

As given-the cost of the Caravan is £15,600 plus VAT at 20%.

The cost of the Caravan$= \£15,600 +\£15,600\times\frac{20}{100}$

                                        $= \£15,600 +\£3120=\£18,720$

As given-Sarah pays a deposit of £5,000.

Deposit = £5,000

The rest of the cost  payment =The cost of the Caravan -Deposit

                                                   $=\£18,720-\£5,000\\=\£13,720$

The amount  of each of the 10 payments of the rest of the cost  payment $=\frac{\£13,720}{10} \\=\£1,372.$

Thus,the amount of each of the 10 payments is £1,372.

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