The monthly payment is £114.
Step-by-step explanation:
Step 1:
First, we determine how much the TV costs in total.
The TV is priced at £1,200 and a 20% VAT.
The total cost of the TV [tex]= 1,200 + (0.20)(1,200) = 1,200 + 240 = 1,440.[/tex]
So the total cost of the TV is £1,440.
If a deposit of £300 is paid, the balance to be paid [tex]= 1,440 - 300 = 1,140.[/tex]
This £1,140 is to be paid in the next 10 months.
Step 2:
To calculate the monthly cost to be paid we divide the total cost by the number of months.
The cost to be paid every month [tex]= \frac{1,140}{10} = 114.[/tex]
So the monthly payment is £114.
