Subjects algebra

Stove Hire Purchase

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1. **State the problem:** We have a stove with a cash price of 800. It can also be bought on hire purchase by paying a 20% deposit and then 12 monthly payments of 75 each. We need to find: (a) the deposit amount (b) the total of the monthly payments (c) the total cost using hire purchase (d) the money saved by paying cash 2. **Calculate the deposit:** Deposit = 20% of 800 $$\text{Deposit} = 0.20 \times 800 = 160$$ 3. **Calculate the total monthly payments:** There are 12 monthly payments of 75 each. $$\text{Total monthly payments} = 12 \times 75 = 900$$ 4. **Calculate the total cost using hire purchase:** Total cost = Deposit + Total monthly payments $$\text{Total cost} = 160 + 900 = 1060$$ 5. **Calculate the money saved by paying cash:** Money saved = Hire purchase total cost - Cash price $$\text{Money saved} = 1060 - 800 = 260$$ **Final answers:** (a) 160 (b) 900 (c) 1060 (d) 260