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
Stove Hire Purchase
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