purchased a video recorder with a cash price of $2980 under hire purchase terms. She paid an initial down payment of 20% of the cash price and interest which is equivalent to 15% of the outstanding balance is charged. The balance is paid in 18 equal monthly instalments. Calculate for the video recorder: (a) The hire purchase price (b) The amount of each monthly instalment (a) The difference between the hire purchase price and the cash price

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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A housewife purchased a video recorder with
a cash price of $2980 under hire purchase
terms. She paid an initial down payment of
20% of the cash price and interest which is
equivalent to 15% of the outstanding balance
is charged. The balance is paid in 18 equal
monthly instalments. Calculate for the video
recorder:
(a) The hire purchase price
(b) The amount of each monthly
instalment
(a) The difference between the hire
purchase price and the cash price
12
Transcribed Image Text:A housewife purchased a video recorder with a cash price of $2980 under hire purchase terms. She paid an initial down payment of 20% of the cash price and interest which is equivalent to 15% of the outstanding balance is charged. The balance is paid in 18 equal monthly instalments. Calculate for the video recorder: (a) The hire purchase price (b) The amount of each monthly instalment (a) The difference between the hire purchase price and the cash price 12
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