Question

Calvin and Jenny are planning a holiday together.

The cost of the villa for their holiday is £3500
They have to pay a deposit of 12% of this cost.
The rest of the cost of the villa is to be paid in monthly instalments of
£220
How many monthly instalments must be paid?

Answer 1

To determine the number of monthly instalments for Calvin and Jenny's holiday villa, calculate a 12% deposit of £3500 to find the remaining balance, then divide that by the monthly instalment amount of £220 to conclude that approximately 14 instalments are needed.

Step-by-step explanation:

To determine how many monthly instalments must be paid, we first calculate the deposit, then subtract it from the total cost of the villa to find the remaining balance to be paid in instalments. Finally, we divide the remaining balance by the monthly instalment amount to find the number of instalments.

Let's start with the deposit:

Deposit = 12% of £3500 = 0.12 × 3500 = £420.

Now subtract the deposit from the total cost to find the remaining balance:

Remaining Balance = £3500 - £420 = £3080.

To find the number of monthly instalments:

Number of instalments = Remaining Balance / Monthly Instalment Amount = £3080 / £220 ≈ 14. Therefore, Calvin and Jenny must pay approximately 14 monthly instalments.