1. **Stating the problem:**
Farah wants to buy a laptop with a cash price of 4500.
She is offered an instalment plan with a 500 down payment and 20 monthly instalments of 220 each.
We need to find:
(a) The instalment price.
(b) The total interest paid.
(c) Which option is better for Farah and why.
2. **Formula and explanation:**
- Instalment price = down payment + (number of instalments \times monthly instalment amount)
- Total interest paid = instalment price - cash price
3. **Calculations:**
(a) Instalment price:
$$\text{Instalment price} = 500 + 20 \times 220$$
$$= 500 + 4400$$
$$= 4900$$
(b) Total interest paid:
$$\text{Interest} = 4900 - 4500$$
$$= 400$$
(c) Comparison:
- Cash price is 4500.
- Instalment plan costs 4900 in total.
- Instalment plan costs 400 more than cash price.
**Conclusion:**
The cash purchase is better because it costs less overall and avoids paying 400 extra in interest.
Laptop Instalment 470088
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