Question

A flat screen television costs $2000 cash. If bought on hire purchase, a consumer must make a deposit of $900 followed by 12 monthly payments of $120. How much can be saved if the television is bought at the cash price?​

Answer 1

`Amount = \$340`

Step-by-step explanation:

Given

`Cost\ Price=\$2000`

On hire-purchase:

`Deposit = \$900`

`Monthly\ Pay = \$120`

`Months =12`

Required

Determine the amount to be saved if the item is bought outrightly

First, we calculate the total payment on hire-purchase:

`Total = Deposit + Monthly\ Pay * Months`

`Total = \$900+ \$120*12`

`Total = \$900+ \$1440`

`Total = \$2340`

Subtract the cost price:

`Amount = Total - Cost\ Price`

`Amount = \$2340 - \$2000`

`Amount = \$340`

The amount to be saved is $340