Question

A sofa set costs $4800 and can be bought under a hire purchase plan. A 15% deposit is required and the remaining amount is to be paid in 24 monthly installments at a simple interest rate of 3% per annum. What is the amount to be paid in installment per month. *

Answer 1

$180.20

Explanation:

15% of $4800=$720

$4800-$720=$4080

6% of $4080=$244.8

$4080+$244.8=$4,324.80

$4,324.80/24=$180.20

so you would pay $180.20 a month