Question

the marked price of a freezer is $3000.00 There is a discount of 15% for each payment To obtain the freezer on a hire purchase ,a deposit of $595 to and 18 monthly installments of $159.50 each are required Calculate the cash price, the total amount paid if bought on hire purchase and the difference between the cash price and the hire purchase price as a percentage of the marked price ​

Answer 1

First, let's calculate the cash price of the freezer:

$3000.00 x 15% discount = $2550.00

So, the cash price of the freezer is $2550.00.

Next, let's calculate the total amount paid if the freezer is bought on hire purchase:

Deposit: $595.00

Monthly installments: 18 x $159.50 = $2836.00

Total amount paid: $595.00 + $2836.00 = $3431.00

So, the total amount paid if the freezer is bought on hire purchase is $3431.00.

Now, let's calculate the difference between the cash price and the hire purchase price as a percentage of the marked price:

Difference = $3431.00 - $2550.00 = $881.00

Percentage difference = ($881.00 ÷ $3000.00) x 100% = 29.37%

So, the difference between the cash price and the hire purchase price is $881.00, which is 29.37% of the marked price.

\textbf{Cash price: $2550.00}

\textbf{Total amount paid (hire purchase): $3431.00}

\textbf{Difference (hire purchase - cash price): $881.00 (29.37% of marked price)}

Explanation: