Answer:
£ 114
Step-by-step explanation:
From the question given above, the following data were obtained:
Price of TV = £ 1200
VAT = 20%
Amount paid = £ 300
Amount paid monthly =.?
Next, we shall determine the VAT. This can be obtained as follow:
VAT = 20% of price of TV
VAT = 20/100 × 1200
VAT = £ 240
Next, we shall determine the total cost of the TV. This can be obtained as follow:
Price of TV = £ 1200
VAT = £ 240
Total cost of TV =?
Total cost = Price + VAT
Total cost = 1200 + 240
Total cost = £ 1440
Next, we shall determine the balance amount he needs to pay. This can be obtained as follow:
Total cost = £ 1440
Amount paid = £ 300
Balance amount =?
Balance = Total cost – Amount paid
Balance = 1440 – 300
Balance = £ 1140
Finally, we shall determine the amount Harry will pay month.
Balance Amount = £ 1140
Number of months = 10
Amount paid monthly =.?
Amount paid monthly = Balance / number of month
Amount paid monthly = 1140 / 10
Amount paid monthly = £ 114
Therefore, Harry will pay £ 114 monthly.
The formula to be used here is:
F = P(1+i)ⁿ
where
P = 40000
n = 6 1/4 years
Let's find i first which has to be converted to compounded annually.
i = (1 + r/m)^m - 1
where m = 4 because there are 4 quarters in 1 yr; and r is the given 0.14.
i = (1 + 0.14/4)⁴ - 1 = 0.1475
Thus,
F = (40000)(1+0.1475)^(6 1/4)
<em>F = $94,517.96</em>
