Question

Andy is buying a car.

Answer 1

The amount payed each month by Andy is £ 504

Solution:

Given that, Andy is buying a car.  

He negotiated a 7 percent decrease on a 6500 car.

Then, amount to be paid = 6500 – 7% of 6500  

$\begin{array}{l}{\text { Amount to be paid }=6500 \times\left(1-\frac{7}{100}\right)} \\\\ {=6500 \times \frac{100-7}{100}=6500 \times \frac{93}{100}} \\\\ {\text { Amount to be paid }=65 \times 93=6045}\end{array}$

He will pay the full balance in 12 equal monthly payments.

We have to calculate the amount paid each month

$\begin{array}{l}{\text { monthly payment }=\frac{\text {total amount to be paid}}{12 \text { months }}} \\\\ {=\frac{6045}{12}=503.75}\end{array}$

Hence, Andy has to pay £ 504 approximately each month.