The marked price of a T.V set is sh 20000. A 20% discount is allowed when buying the T.V. on cash. On hire purchase terms, only 12 monthly installments of sh 2000 each is paid. How much more does it cost to buy the T.V. set on hire purchase terms than cash?

Answer 1

Cash: Cost = 0.80 * 20,000 = sh 16,000.

Term: 12 * 2000 = sh 24,000.

24,000 - 16,000 = sh 8,000 more.