Question

the hire purchase of a car is 680000 naira. there is a deposit of 12.5 percent. the remainder is spread over 12 equal monthly instalment. find the deposit , calculate the remainder to be paid and find the amount of each monthly instalment to the nearest naira​

Answer 1

Explanation:

I am not sure why there is no interest rate given as it is common that there will be an interest charge for a monthly installment plan.

Assuming it is an interest-free plan, the remainder payment is for an amount of:

680000*(1 - 12.5%)

= 680000*(0.875)

= 595000 naira

Dividing that into 12 equal monthly, each monthly installment is

595000/12 = 49583.33

~49583 naira