Question

4. A video game set can be bought on hire purchase by making a deposit of $190 and 12 monthly instalments of $171 each. Calculate the hire purchase cost of the video game set. The actual marked price of the video game set is $1900. This includes a sales tax of 15%. Calculate the selling price of the video game set if no sales tax is included.​

Answer 1

Answer: $1652.17

Explanation:

First, let's calculate the hire purchase cost of the video game set.

The hire purchase cost is the initial deposit plus the total cost of the monthly installments.

The total cost of the monthly installments is $171 * 12 = $2052.

So, the total hire purchase cost is $190 (deposit) + $2052 (total monthly payments) = $2242.

Now, let's calculate the selling price of the video game set if no sales tax is included.

If the marked price of $1900 includes a 15% sales tax, we can calculate the pre-tax price (the selling price without the tax) by dividing the marked price by 1 plus the tax rate.

The tax rate in decimal form is 15% = 0.15.

So, the selling price without the tax would be $1900 / (1 + 0.15) = $1900 / 1.15 = approximately $1652.17.