Question

Peter buys a camper van costing £35000 + 20% VAT. He pays a 50% deposit and then arranges to pay the remaining balance in 20 equal pay monthly instalments. Calculate the amount paid each month by Peter.

Answer 1

The amount paid each month is 1050.

35,000 plus 20% is 42,000 because 20% of 35,000 is 7,000.

Next, divide 42,000 by 20, and you would get 1050.