The market price of a stove is $800. A worker bought the stove on hire-purchase by making a down payment of $400.00 and twelve monthly installments of $45.00 each. How much could the worker have saved if she/ he had bought the stove for the marked price?
The total cost of the stove on hire-purchase is:
Down payment + Monthly installments
= $400.00 + ($45.00 x 12)
= $400.00 + $540.00
= $940.00
If the worker had bought the stove for the market price of $800.00, they would have saved:
$940.00 (hire-purchase cost) - $800.00 (market price) = $140.00
So, the worker could have saved $140.00 if she/he had purchased the stove for the market price instead of on hire-purchase.