The marked price of a sewing machine is $ 15,000. A 5% discount is allowed of the machine bought for cash. On hire purchase, a deposit of $ 6,000 plus three equal monthly installments of $ 3,200 is required. Hali and John bought the sewing machines from a shop. Hali paid cash while John bought by hire purchase terms. How much more than Hali did John pay for the machine?
Hali:
Cost = 0.95 * 15000 = $14,250
John:
Cost = 6000 + 3*3200 = $15,600
15,600 - 14,250 = $1,350 More than Hali.
To find out how much more John paid for the machine compared to Hali, we need to calculate the total amount paid by each of them.
Hali paid the marked price of $15,000 in cash. Since a 5% discount is allowed for cash payment, Hali's total payment will be:
$15,000 - (5% of $15,000) = $15,000 - ($15,000 * 0.05) = $15,000 - $750 = $14,250
On the other hand, John bought the sewing machine on hire purchase, which means he paid a deposit of $6,000 and three equal monthly installments of $3,200 each. The total amount paid by John can be calculated as follows:
Deposit + (Number of installments * Monthly installment)
$6,000 + (3 * $3,200) = $6,000 + $9,600 = $15,600
To determine how much more John paid compared to Hali, we subtract Hali's total payment from John's total payment:
$15,600 - $14,250 = $1,350
Therefore, John paid $1,350 more than Hali for the sewing machine.