Question

With

Sue buys a car costing £8000 plus
20% VAT.
She pays £4000 deposit and then
chooses to pay the balance in ten equal
monthly payments.
Calculate each monthly payment
CS

Answer 1

Each monthly payment is of £560.

Explanation:

Sue buys a car costing £8000 plus 20% VAT?

She has to pay:

8000 plus 20% of tax. So

`T = 8000 + 0.2*8000 = 9600`

She pays £4000 deposit and then chooses to pay the balance in ten equal monthly payments.

4000 deposit, and then 9600 - 4000 = 5600 divided in ten equal monthly payments.

5600/10 = 560

Each monthly payment is of £560.