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Financial Maths, STD2 EO-Bank 22

Tariq uses a buy now, pay later service to purchase headphones for $360.

He pays a $60 deposit upfront, with the remaining balance split into 4 equal fortnightly payments.

No interest is charged if all payments are made on time.

Tariq misses his final payment. He is charged a late fee of $12, plus a further $6 per week until the missed payment is made. Tariq pays the missed payment 3 weeks late.

  1. What is the amount of each fortnightly payment?   (1 mark)

    --- 3 WORK AREA LINES (style=lined) ---

  2. What is the total amount Tariq pays for the headphones?   (2 marks)

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Show Answer Only

a.   \(\$75\)

b.   \(\$390\)

Show Worked Solution

a.    \(\text{Remaining balance} = \$360-\$60 = \$300\)

\(\text{Each payment} = \dfrac{\$300}{4} = \$75\)
 

b.    \(\text{Late fee} = \$12\)

\(\text{Weekly fees} = 3 \times \$6 = \$18\)

\(\text{Total} = \$60 + \$300 + \$12 + \$18 = \$390\)

Filed Under: Purchasing Goods (Y11-X) Tagged With: Band 3, Band 4, smc-7724-40-Buy Now/Pay Later

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