Question

A television costs $400,00 cash. When bought on hire purchase, a deposit 1 point

of $60.00 is required with 12 equal monthly installments of $42.50. How
much is saved by paying cash?
O A. $60.00
O B. $80.00
O C. $110.00
O
D. $170.00

Answer 1

Answer D. 170
$42.50 x 12 months = $510 + the $60.00 deposit is $570. You subtract $570-400 and you get $170.