1. **State the problem:**
We are given a stove with a cash price of 1500.
It can be bought on hire purchase with a deposit of 10% of the cash price and 12 monthly payments of 125 each.
We need to find:
(a) total amount of monthly payments
(b) amount of deposit
(c) total cost using hire purchase
(d) money saved by paying cash
2. **Calculate total monthly payments:**
The monthly payment is 125 and there are 12 payments.
Total monthly payments = $12 \times 125 = 1500$
3. **Calculate deposit amount:**
Deposit is 10% of cash price.
Deposit = $0.10 \times 1500 = 150$
4. **Calculate total cost using hire purchase:**
Total cost = deposit + total monthly payments
= $150 + 1500 = 1650$
5. **Calculate money saved by paying cash:**
Money saved = hire purchase total cost - cash price
= $1650 - 1500 = 150$
**Final answers:**
(a) 1500
(b) 150
(c) 1650
(d) 150
Hire Purchase
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