The marked price of a coffee grinder is $3000.00. There is a discount of 15% for cash payment. To obtain the coffee grinder on hire purchase, a deposit of $595.00 and 18 monthly installments of $159.50 each are required.

Question

Calculate the
Cash price
Total amount paid if bout on hire purchase
Amount saved by paying cash

Answer 1

Cash price = $3000.00 - ($3000.00 * 0.15) = $2550.00

Total amount paid if bought on hire purchase = $595.00 + (18 * $159.50) = $595.00 + $2871.00 = $3466.00

Amount saved by paying cash = $3000.00 - $2550.00 = $450.00

Therefore,
Cash price = $2550.00
Total amount paid if bought on hire purchase = $3466.00
Amount saved by paying cash = $450.00