Posted by **arzam** on Friday, November 8, 2013 at 7:37am.

The cash price for a car was $7640. Gurtaj bought the car on the following terms : A deposit of 20% of the cash price and 36 monthly payments of $191.60 . Calculate the total amount Gurtaj paid.

- maths -
**Reiny**, Friday, November 8, 2013 at 8:03am
According to actuarial math, where interest is considered, he paid $7640, (you cannot simply add "monies" that are in different time slots on a time graph.

e.g. Making $40,000 in 1985 ≠ $40,000 in 2013

If you ignore interest the total he paid

= .2(7640) + 36(191.60) = $8425.60

A more interesting question would have been to find the interest rate per annum compounded monthly that he was charged.

- maths -
**arzam**, Friday, November 8, 2013 at 8:22am
Thanks. It helped me for my exam!

## Answer this Question

## Related Questions

- Math - Jones bought a radio on hire purchase terms. He paid a deposit of $ 500 ...
- Finance - You are interested in a new Ford Taurus. After visiting your Ford ...
- Finance - You are interested in a new Ford Taurus. After visiting your Ford ...
- Math - Jim made a down payment of 1000 dollars toward the purchase of a car. To ...
- math - If a TV set is bought on the installment plan there is a down payment of...
- math - If a TV set is bought on the installment plan there is a down payment of...
- Math - The marked price of a sewing machine is $ 15,000. A 5% discount is ...
- Finance Math - Jane made a down payment of 1500 dollars toward the purchase of a...
- Math - The marked price of a bicycle is $ 6245. Dan bought the bicycle on cash ...
- math - Calculate (a) the total installment price, (b) the carrying charges, and...

More Related Questions