Question

Mrs Gibb bought a car for $36 000. She paid a deposit of 1/6 of the total value and decided to pay the balance over a period of 24 months. How much does she have to pay each month?

(a) $1250
(b) $6000
(c) $30000
(d) $8560

Answer 1

The amount that Mrs. Gibb was paying off with her monthly payments was
$36,000 - (1/6)×36,000 = $30,000

That amount divided into 24 equal payments is
$30,000÷24 = $1250

The best answer choice is
(a) $1250