Question

Mr. and Mrs. Winslow decided to purchase a washing machine. It is marked at $2,000 for a cash payment OR on a Hire Purchase plan with 20% down payment and 12 equal monthly installments of $160. Determine

(i) The down payment
(ii) The total paid in the monthly installments
(iii) The total paid by the Hire Purchase plan
(iv) The amount more that is paid using the Hire Purchase plan than by paying cash.

Answer 1

i) $400

ii) $1,920.00

iii) $2,320.00

iv) $320.00

Explanation:

2000 x .2 = 400

12 x 160 = 1920

400 + 1920 = 2320

2320 - 2000 = 320