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4. The cash price of a stereo set was $1850. The hire purchase price was 20% more than the cash
price.
a) Calculate the hire-purchase price
b) Calculate the number of monthly installments needed to buy the stereo on hire-purchase
given that a down payment of $500 and monthly installments of $215 each were required.



Answer :

Mickeym175

Answer:

a)$2220

b) 8 monthly installments

Step-by-step explanation:

a) we find the hire purchase price by multiplying 20% by the price 1850

1850x.20

370

And now we add that to the original price

1850+370

$2220 is the hire purchase price

b) $2220 is the price in total so to find how many months we are going to paying it for we first subtract the down payment of $500

2220-500

1720

Now we divide the monthly payment of $215 to find how many months

1720/215

8 monthly installments

Hopes this helps please mark brainliest

semsee45

Answer:

(a)  $2220

(b)   8 monthly installments.

Step-by-step explanation:

Given:

  • Cash price of stereo = $1850
  • Hire purchase price = 20% more than cash price.

Part (a)

To calculate the hire-purchase price, find 120% of the cash price:

[tex]\begin{aligned}\implies \sf 120\%\; of\; \$1850&=\sf \dfrac{120}{100} \times 1850\\\\& = \sf \dfrac{222000}{100}\\\\&=\sf 2220\end{aligned}[/tex]

Part (b)

To find the number of monthly installments, subtract the down payment from the hire-purchase amount, then divide by the monthly installment cost.

Total hire-purchase price less the down payment of $500 is:

[tex]\implies 2220-500=1720[/tex]

Divide by monthly payment of $215:

[tex]\implies 1720 \div 215 = 8[/tex]

Therefore, the number of monthly installments is 8.

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