Question

A color television set can be bought in an electrical store for a cash price of $460 or by using the hire purchase plan. Calculate the amount of the deposit. *

Enter the numeric portion of your answer only.


The total monthly payments. *


The total cost of the set using the hire purchase plan. *


How much can be saved by paying cash? *


Write the savings as a fraction of the cash price in its lowest terms.

Answer 1

The correct answer is -

1. $115

2. 15 (each of $25) that equal to $375

3. $490

4. $30

Explanation:

As given in the picture related to the given question, there are two ways one can get a color television, one by the cash price of $460 or by the renting plan of 25% of the price as a deposit and the rest in a15 equal payments of $25.

Then the amount of deposit would be :

$460*25/100

= $115

It is given in the image attached that there must be 15 payments (each of $25) after the deposit.

The total amount one has to pay using hire purchase plan is :

= deposit + total money by monthly payments

= 115 + 375

= $ 490

By using cash price one can save -

= total cost using the rental plan - cash price

= 490 - 460

= $ 30