Question

Andy is buying a car.

He negotiated a 7 percent decrease on a £6500 car.He will pay the full balance in 12 equal monthly payments.
Calculate the amount payed each month

Answer 1

The amount payed each month by Andy is £ 504

Solution:

Given that, Andy is buying a car.

He negotiated a 7 percent decrease on a 6500 car.

Then, amount to be paid = 6500 – 7% of 6500

`\begin{array}{l}{\text { Amount to be paid }=6500 *\left(1-(7)/(100)\right)} \\\\ {=6500 * (100-7)/(100)=6500 * (93)/(100)} \\\\ {\text { Amount to be paid }=65 * 93=6045}\end{array}`

He will pay the full balance in 12 equal monthly payments.

We have to calculate the amount paid each month

`\begin{array}{l}{\text { monthly payment }=\frac{\text {total amount to be paid}}{12 \text { months }}} \\\\ {=(6045)/(12)=503.75}\end{array}`

Hence, Andy has to pay £ 504 approximately each month.