Question

The cash price for a car was £7460. Mr Roberts bought the car on the

following hire purchase terms: A deposit of 20% of the cash price and 36 monthly payments of £191.60. Calculate the total amount Mr Roberts paid.

Answer 1

To calculate the initial deposit of 20% you’ll need to do 7460*0.20 which is 1492.

The for the total of the 36 months you’ll do 191.60*36 which is 6897.60.

Then to get the total amount Mr. Roberts paid you’ll add the two totals we have 6897.60+1492 which would give the total amount paid of £8389.60.