Question

the retail price of a television set is $4500. if the buyer pays cash, the price 10% below the retail price. if the set is bought on hire purchasr, the buyer pays a downpayment of $675 and 24 monthly instalments of $212.50.(a) Determine the difference between the hire purchase price and the cash price.(b) Calculate the difference as a percentage of the retail price.

Answer 1

Data:

Retail price: $4500

Pays cash: -10%

hire purshast: $675 + 24(212.50)

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The cash price is: $4050

1. Find the 10% of 4500:

`4500\cdot(10)/(100)=450`

2. Substract the 10% to the retail price:

`4500-450=4050`

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Hire purchase price is: $5775

1. Add 675 and (24*212.50):

`\begin{gathered} 675+(24\cdot212.50) \\ =675+5100 \\ =5775 \end{gathered}`

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Difference between hire purchase and cash price is: $1725

`5775-4050=1725`

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Difference as a percentage of the retail price is: 38.33%

As the retail price 4500 is 100% which percent is 1725:

`1725\cdot(100)/(4500)=38.33`