A computer can be either bought at a cash price of ${\$3460}$ or on hire purchase at a downpayment

Question

A computer can be either bought at a cash price of ${\$3460}$ or on hire purchase at a downpayment of ${\$500}$ and monthly instalments at a rate of ${12\%}$ per annum for ${15}$ months. Find the total instalment amount. Find the hire purchase price. If one is to buy the computer at the cash price, express the savings as a percentage of the cash price.

Accepted Answer

(i) $\$3404$, (ii) $\$3904$, (iii) $12.8\%$ (3 s.f.).

IP1U8 8.3.5 Worked Example 1

IP1U8 8.3.5 Worked Example 1

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