Financial Maths, SMB-026

Shaun decides to buy a new sound system on a hire-purchase plan.

The sound system is priced at $3500.

Shaun pays a 15% deposit and monthly repayments for five years.

If Shaun's total purchase price after paying the last instalment is $4425, calculate his monthly repayment. (3 marks)

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`$65`

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`text{Deposit} = \frac{15}{100} xx 3500 = $525`

`text{Balance due after deposit} = 4425-525= $3900`

`text{Number of repayments} = 5 xx 12 = 60`

`text{Monthly repayment} = \frac{3900}{60} = $65`