This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.
ScanSolve AI Answer
a) Step 1: Calculate the discount amount. The original cost of the car is N7,600,000. A 9% discount is given for cash payment. Discount amount = 9\% × N7,600,000 Discount amount = (9)/(100) × 7,600,000 Discount amount = 9 × 76,000 Discount amount = N684,000 Step 2: Calculate the cash price. Cash price = Original cost - Discount amount Cash price = N7,600,000 - N684,000 Cash price = N6,916,000 b) Step 1: Calculate the total number of months for installment payment. The car is bought by monthly installment for two years. Number of months = 2 years × 12 months/year Number of months = 24 months Step 2: Calculate the total cost when paid in installments. The monthly installment is N360,000. Installment cost = Monthly installment × Number of months Installment cost = N360,000 × 24 Installment cost = N8,640,000 c) Step 1: Calculate the difference between paying in cash and paying in installment. Difference = Installment cost - Cash price Difference = N8,640,000 - N6,916,000 Difference = N1,724,000