smc-6278-35-Buy Now/Pay Later

Financial Maths, STD2 EQ-Bank 35

A used car is for sale at $19 500. Priya purchases it using a finance package with a 15% deposit and weekly repayments of $143.27 for 3 years.

What is the interest Priya will pay? (3 marks)

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$$5775.12$

Show Worked Solution

$\text{Deposit}$

$=\dfrac{15}{100}\times 19\,500=$2925$

$\text{Weeks in 3 years}=3\times 52=156$

$\text{Total repayments}$	$=156\times 143.27$
	$=$22\,350.12$

$\text{Total cost}$	$=2925+22\,350.12$
	$=$25\,275.12$

$\therefore\ \text{Interest paid}$	$=25\,275.12-19\,500$
	$=$5775.12$

Financial Maths, STD2 EQ-Bank 34

A smart TV is for sale at $2850. Liam purchases it using a finance package with a 20% deposit and monthly repayments of $87.63 for 3 years.

What is the interest Liam will pay? (3 marks)

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$$874.68$

Show Worked Solution

$\text{Deposit}=\dfrac{20}{100}\times 2850=$570$

$\text{Months in 3 years}=3\times 12=36$

$\text{Total repayments}=36\times 87.63=$3154.68$

$\text{Total cost}=570+3154.68=$3724.68$

$\therefore\ \text{Interest paid}=3724.68-2850=$874.68$

Financial Maths, STD2 EQ-Bank 24

Mei is purchasing a new car and has a choice between two finance packages.

Package A: Deposit of $5000, monthly repayments of $1150 for 4 years.

Package B: No deposit, monthly repayments of $1280 for 5 years.

Determine the total cost of Package A. (2 marks)
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Determine the total cost of Package B. (2 marks)
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How much will Mei save by selecting the cheaper package? (1 mark)
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a. $$60\,200$

b. $$76\,800$

c. $$16\,600$

Show Worked Solution

a. $\text{Total repayments} (A)=1150\times 12\times 4=$55\,200$

$\text{Total cost of Package A}=5000+55\,200=$60\,200$

b. $\text{Total repayments (B)}=1280\times 12\times 5=$76\,800$

$\text{Total cost of Package B}=$76\,800\ \text{(No deposit)}$

c. $\text{Savings using Package A}=76\,800-60\,200=$16\,600$

Financial Maths, STD2 EQ-Bank 20

A motorcycle is for sale at $16 500. Finance is available with a $3200 deposit and monthly repayments of $420 for 3 years.

What is the total cost of the repayments? (1 mark)
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How much will the motorcycle cost if Daniel uses the finance package? (1 mark)
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What is the interest paid? (1 mark)
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a. $$15\,120$

b. $$18\,320$

c. $$1820$

Show Worked Solution

a. $\text{Number of months}=3\times 12=36\ \text{months}$

$\text{Total repayments}=36\times 420=$15\,120$

b.	$\text{Total cost}$	$=\text{Deposit}+\text{Total repayments}$
		$=$3200+$15\,120$
		$=$18\,320$

c.	$\text{Interest paid}$	$=\text{Total cost}-\text{Original cost}$
		$=$18\,320-$16\,500=$1820$

Financial Maths, STD2 EQ-Bank 17

Rachel is purchasing a new refrigerator priced at $3200. The store offers finance terms of 30% deposit and repayments of $65 per week for 40 weeks.

What is the amount of the deposit? (1 mark)
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Find the total cost of the repayments. (1 mark)
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What is the total cost of purchasing the refrigerator using the finance package? (1 mark)
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a. $$960$

b. $$2600$

c. $$3560$

Show Worked Solution

a. $\text{Deposit}=\dfrac{30}{100}\times 3200=$960$

b. $\text{Total repayments}=65\times 40=$2600$

c.	$\text{Total cost}$	$=\text{Deposit}+\text{Total repayments}$
		$=$960+$2600$
		$=$3560$

Financial Maths, STD2 EQ-Bank 19

Ben is purchasing a used van with a sale price of $32 600. He has arranged finance with weekly repayments of $280 for 3 years.

Calculate the total amount of the repayments. (2 marks)

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$$43\,680$

Show Worked Solution

$\text{Number of weeks in 3 years}=3\times 52=156\ \text{weeks}$

$\text{Total repayments}=280\times 156=$43\,680$

Financial Maths, STD2 EQ-Bank 16

Olivia is purchasing a car with a sale price of $24 800. She needs to pay a 25% deposit. Calculate the amount of the deposit Olivia needs to pay. (1 mark)

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$$6200$

Show Worked Solution

$\text{Deposit}=\dfrac{25}{100}\times 24\,800=$6200$

Financial Maths, STD2 EQ-Bank 14 MC

Tom purchased a car using a finance package. He paid a deposit of $6500 and the total amount he paid for the car was $38 900. The loan was for 4 years with equal monthly repayments.

What was Tom's monthly repayment?

$675
$810
$8100
$9725

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$A$

Show Worked Solution

$\text{Total repayments:}$	$=\text{Total amount paid}-\text{Deposit}$
	$=38\,900-6500$
	$=$32\,400$

$\text{Number of repayments}=4\times 12=48$

$\text{Monthly repayment:}=\dfrac{32\,400}{48}=$675\ \text{per month}$

$\Rightarrow A$

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?

$4800
$34 560
$39 360
$44 160

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$C$

Show Worked Solution

$\text{Calculate deposit:}$

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

$\text{Calculate total repayments:}$

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

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

$\Rightarrow C$

Financial Maths, STD2 EQ-Bank 3 MC

David is purchasing a motorcycle for sale at $15 600. The finance terms are weekly repayments of $180 for 2 years.

What is the total amount of the repayments?

$4320
$8640
$18 720
$19 920

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$C$

Show Worked Solution

$\text{Number of weeks in 2 years:}=2\times 52=104$

$\text{Total repayments}$	$=104\times $180$
	$=$18\,720$

$\Rightarrow C$

Financial Maths, STD2 EQ-Bank 1 MC

Sarah is purchasing a car for sale at $28 000. She must pay a 20% deposit.

What is the amount of the deposit Sarah needs to pay?

$560
$5600
$22 400
$33 600

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$B$

Show Worked Solution

$\text{Deposit}$	$=20\%\times $28\,000$
	$=$5600$

$\Rightarrow B$

Financial Maths, STD2 EQ-Bank 11 MC

A car is for sale at $18 000. Finance is available at $4000 deposit and monthly repayments of $380 for 5 years. What is the interest paid on the loan?

$4 800
$8 800
$18 000
$22 800

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$B$

Show Worked Solution

$\text{Deposit} =$4000$

$\text{Monthly repayments} =$380\times 12\times 5 =$22\,800$

$\text{Total paid} =4000+22\,800= \$26\,800$

$\text{Interest paid}=26\,800-18\,000=$8800$

$\Rightarrow B$

b.	\(\text{Total cost}\)	\(=\text{Deposit}+\text{Total repayments}\)
		\(=$3200+$15\,120\)
		\(=$18\,320\)

c.	\(\text{Interest paid}\)	\(=\text{Total cost}-\text{Original cost}\)
		\(=$18\,320-$16\,500=$1820\)

c.	\(\text{Total cost}\)	\(=\text{Deposit}+\text{Total repayments}\)
		\(=$960+$2600\)
		\(=$3560\)

\(\text{Total repayments:}\)	\(=\text{Total amount paid}-\text{Deposit}\)
	\(=38\,900-6500\)
	\(=$32\,400\)

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

\(\text{Total repayments}\)	\(=156\times 143.27\)
	\(=$22\,350.12\)

\(\text{Total cost}\)	\(=2925+22\,350.12\)
	\(=$25\,275.12\)

\(\therefore\ \text{Interest paid}\)	\(=25\,275.12-19\,500\)
	\(=$5775.12\)

\(\text{Total repayments}\)	\(=104\times $180\)
	\(=$18\,720\)