Question

the cash price of a television set is $10 000.00 a woman buys the television set on hire purchase by making a 20% down payment and paying off the balance in 12 equal installments of $800.00. the amount saved if the television set was bought for cash is

Answer 1

The amount saved if the television set was bought for cash is $1,600.

Given the cost price of a television set as $10,000.00

If bought on hire;

Down payment = 20% of the cost

Down payment = 0.2 × 10,000

Down payment = $2000

If she is paying off-balance in 12 equal installments of $800.00, the amount paid for 12 months will be 12 × 800 = $9,600

• Total amount paid if hired = $2000 + $9,600

• Total amount paid if hired = $11,600

Amount saved if bought on cash = Amount if hired - Cost price of television

Amount saved if bought on cash = $11,600 - $10,000

Amount saved if bought on cash = $1,6000

Hence the amount saved if the television set was bought for cash is $1,600.

Learn more here: https://brainly.com/question/24730392