Sure! Let’s break down the solution to find the amount you need to pay each month if you buy the bike through hire purchase.
1. Determine the deposit amount:
- The deposit is 10% of the hire purchase price.
- Hire purchase price: £300
- Deposit percentage: 10% of £300
To find the deposit amount:
[tex]\[
\text{Deposit amount} = \text{Hire purchase price} \times \text{Deposit percentage}
\][/tex]
[tex]\[
\text{Deposit amount} = £300 \times 0.10 = £30.00
\][/tex]
2. Calculate the remaining amount after the deposit is paid:
- Subtract the deposit amount from the hire purchase price to get the remaining amount to be paid via installments.
[tex]\[
\text{Remaining amount} = \text{Hire purchase price} - \text{Deposit amount}
\][/tex]
[tex]\[
\text{Remaining amount} = £300 - £30 = £270
\][/tex]
3. Determine the monthly installment amount:
- The remaining amount is to be paid in 10 equal monthly installments.
[tex]\[
\text{Monthly installment} = \frac{\text{Remaining amount}}{\text{Number of installments}}
\][/tex]
[tex]\[
\text{Monthly installment} = \frac{£270}{10} = £27.00
\][/tex]
So, the amount you need to pay each month, after the initial deposit, is £27.00.
