Question

An electricity company estimates that Daryl will spend £600 on electricity next year.

An administration charge of 15% is added.
Daryl wants to pay in four equal instalments throughout the year,
How much should each payment be?

Answer 1

Each payment should be £172.5

Explanation:

Cost of electricity for next year = £600

Administration charge = 15%

Daryl wants to pay in four equal instalments throughout the year,

How much should each payment be?

First we need to find the total cost of bill by adding 15% of administration charge by finding 15% of 600

`15\% \:of\: 600\\=(15)/(100)* 600\\= 90`

So, 15% of 600 is 90

Now adding 90 into the electricity cost:

600+90

= 690

Now, the total cost of electricity bill is £690

Daryl wants to pay in four equal instalments.

So, divide 690 by 4

Each payment for instalments is:
`(690)/(4) = 172.5`

So, Each payment should be £172.5