Math  /  Algebra

Question15. The cash price of a new car is $87500\$ 87500. (i) Tim buys the car on hire purchase.
He pays a deposit of one-fifth of the cash price. He then makes 48 monthly payments of $1960\$ 1960. What is the total amount that Tim pays for the car? $87500÷5=$77500$1960×48=$94080 Trach =$94080+$17500=$$111580\begin{array}{l} \$ 87500 \div 5 \\ =\$ 77500 \\ \$ 1960 \times 48 \\ =\$ 94080 \\ \text { Trach }=\$ 94080+\$ 17500 \\ =\$ \$ 111580 \end{array} Answer $111580\$ 111580 [2] (ii) The original value of the car is its cash price of $87500\$ 87500.
Each year the value of the car decreases by 10%10 \% of its value at the start of the year. At the end of three years, Tim decides to sell the car. Calculate the overall percentage reduction in the value of the car compared with its original value.

Studdy Solution
Tim paid a total of $111580\$111580 for the car through the hire purchase plan.
After three years, the car's value decreased by approximately 27.1%27.1\% compared to its original value.

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