Financial Maths, STD2 EQ-Bank 12 MC

Jessica is purchasing a van for sale at $32 000. Finance is available with a 15% deposit and monthly repayments of $720 for 4 years.

What is the total cost of purchasing the van using the finance package?

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$C$

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$\text{Calculate deposit:}$

$\text{Deposit}=\dfrac{15}{100}\times $32\,000=$4800$

$\text{Calculate total repayments:}$

$\text{Total repayments}=720\times 12\times 4=$34\,560$

$\text{Total cost:}$	$=\text{Deposit}+\text{Total repayments}$
	$=4800+34\,560$
	$=$39\,360$

$\Rightarrow C$

\(\text{Total cost:}\)	\(=\text{Deposit}+\text{Total repayments}\)
	\(=4800+34\,560\)
	\(=$39\,360\)