Question

The cash price of a bike is $3000. The bike can be bought on hire purchase by making a 25% down-payment and monthly payments of 125 for 2 years. The hire purchase is

A) $3000
B) $750
C) $ 3750
D) $125​

Answer 1

C) $3750

Explanation:

We can start by calculating the down payment. To do this we can just simply calculate 25% of 3000, which equals 0.25*3000=7500. Now we can find out how much money it will cost to pay not including the down payment. $125 monthly for 2 years= $125 monthly for 24 months= 125*24= $3000. Finally we add the downpayment and the total cost of monthly payment to get $7500+$3000=$3750.

Answer 2

25% downpayment of $750 + $125 x 24 months

= $3750