Step 1: Find the Discounted Amount
First, let's figure out how much Andy saves with the 7% discount. To do this, we need to find 7% of £6,500.
7% is 7 out of 100, so it can also be written as 0.07 (7/100 = 0.07).
So, the amount of discount is 0.07 multiplied by £6,500.
Discount = 0.07 * 6,500 = £455.
Step 2: Find the Price After Discount
Now, we need to subtract the discount from the original price of the car to find out how much Andy needs to pay after the negotiation.
Price after discount = Original Price - Discount
= £6,500 - £455
= £6,045.
Step 3: Calculate the Monthly Payments
Andy is going to pay the amount in 12 equal monthly payments. So we have to divide the total amount he has to pay by 12.
Monthly payment = Total Amount / Number of months
= £6,045 / 12
≈ £503.75.
And there you go! Andy will have to pay approximately £503.75 each month for 12 months to buy the car after negotiating a 7% decrease on the original price.
Just imagine Andy slicing up the total cost into 12 equal little pieces, like a pie, and then paying for one slice each month!