Three furniture shops, $X$, $Y$ and $Z$, offer the following hire purchase schemes for a parti

Question

Three furniture shops, $X$, $Y$ and $Z$, offer the following hire purchase schemes for a particular sofa set. Shop $X$ ${15\%}$ discount off the cash price of ${\$3280}$ ${20\%}$ deposit with ${1.5}$ years' instalments of ${\$180}$/month Shop $Y$ Cash price of ${\$3028}$ ${25\%}$ deposit with ${2}$ years' instalments of ${\$130}$/month Shop $Z$ Cash price of ${\$3012}$ ${35\%}$ deposit with ${2.5}$ years' instalments of ${\$90}$/month Which shop should Mr Chen buy the sofa set from? Explain your answer by showing your working clearly. How much would Mr Chen save if he were to pay cash for the sofa set from the shop in (i)?

Accepted Answer

(i) Shop $Z$, with a hire purchase price of $\$3754.20$. (ii) $\$742.20$.

IP1U8 8.3.5 PN1 Q2

IP1U8 8.3.5 PN1 Q2

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