The marked price of a sewing machine is $ 15,000. A 5% discount is allowed of the machine bought for cash. On hire purchase, a deposit of $ 6,000 plus three equal monthly installments of $ 3,200 is required. Hali and John bought the sewing machines from a shop. Hali paid cash while John bought by hire purchase terms. How much more than Hali did John pay for the machine?

Question

The marked price of a sewing machine is $ 15,000. A 5% discount is allowed of the machine bought for cash. On hire purchase, a deposit of $ 6,000 plus three equal monthly installments of $ 3,200 is required. Hali and John bought the sewing machines from a shop. Hali paid cash while John bought by hire purchase terms. How much more than Hali  did John pay for the machine?

Henry · Answer

Hali: Cost = 0.95 * 15000 = $14,250 John: Cost = 6000 + 3*3200 = $15,600 15,600 - 14,250 = $1,350 More than Hali.