Question

The marked price of a refrigerator was 68,000 a 20% discount was allowed on cash payments Jeremy bought the refrigerator on higher purchase terms paying a deposit of 38,000 in 17 equal monthly installments of shilling 2,000 how much would have Jeremy saved if he had bought it on cash terms

Answer 1

The amount Jeremy paid as a deposit is 38,000 shillings. This means he has to pay the remaining amount through monthly installments over 17 months.

The total cost of the refrigerator after the 20% discount is 68,000 - (0.20 * 68,000) = 68,000 - 13,600 = 54,400 shillings.

Jeremy has paid a deposit of 38,000 shillings, so he still has to pay 54,400 - 38,000 = 16,400 shillings in 17 monthly installments.

Each monthly installment is 2,000 shillings, so the total amount Jeremy will pay over 17 months is 17 * 2,000 = 34,000 shillings.

Therefore, the total amount Jeremy will pay for the refrigerator is 38,000 (deposit) + 34,000 (installments) = 72,000 shillings.

If Jeremy had bought the refrigerator on cash terms, he would have paid 54,400 shillings instead of 72,000 shillings.

Therefore, Jeremy would have saved 72,000 - 54,400 = 17,600 shillings if he had bought the refrigerator on cash terms.