The cash price of a large refrigerator is $2000.
- A customer buys the refrigerator under a hire-purchase agreement.
- She does not pay a deposit and will pay $55 per month for four years.
- Calculate the total amount, in dollars, the customer will pay. (1 mark)
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- Find the total interest the customer will pay over four years. (1 mark)
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- Determine the annual flat interest rate that is applied to this hire-purchase agreement.
- Write your answer as a percentage. (1 mark)
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- Calculate the total amount, in dollars, the customer will pay. (1 mark)
- Next year the cash price of the refrigerator will rise by 2.5%.
- The following year it will rise by a further 2.0%.
- Calculate the cash price of the refrigerator after these two price rises. (1 mark)
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