Answer:
A) Discount on Cash price. ($9,000 )
B) Cash Price. ($51,000 )
C) Amount Payable. ($51,000 )
D ) Hire Purchase Price ($66,000 )
E ) Difference between the Hire Purchase price and the Cash Price. ($15,000 )
Step-by-step explanation:
The following is the workings:
The GT Missouri marked price = $60,000
If paying cash,
Discount = 15%
(15/ 100 ) x $60,000 = $9,000
Actual Price (less discount) = $60,000 - $9000 = $51,000
If hire purchase,
Firstly, 30% marked price,
= (30/100) x $60,000 = $18,000
Monthly payment = $1000
Period = 4 years = 4 x 12 = 48 months
Total monthly payment,
$1000 x 48 = $48, 000
Therefore, total hire purchase payment
Monthly payment + initial 30% payment
= $18,000 + $48,000 = $66,000
Difference between hire purchase and cash price,
= $66,000 - $51,000 = $15,000
