Solve and number it Questions 11

The balance is the cost price minus the deposit.

$$\text{Balance} = \text{Cost Price} - \text{Deposit}$$ $$\text{Balance} = \text{GHC } 25,000.00 - \text{GHC } 5,000.00$$ $$\text{Balance} = \text{GHC } 20,000.00$$

The interest on the balance is 15% per annum simple interest for 2 years.
Principal ($P$) = GHC 20,000.00
Rate ($R$) = 15% = 0.15
Time ($T$) = 2 years

$$\text{Interest} = P \times R \times T$$ $$\text{Interest} = 20,000 \times 0.15 \times 2$$ $$\text{Interest} = 3,000 \times 2$$ $$\text{Interest} = \text{GHC } 6,000.00$$

The total amount paid for the car is the deposit plus the balance plus the interest on the balance.

$$\text{Total amount paid} = \text{Deposit} + \text{Balance} + \text{Interest}$$ $$\text{Total amount paid} = 5,000 + 20,000 + 6,000$$ $$\text{Total amount paid} = \text{GHC } 31,000.00$$

The balance plus interest is paid over 2 years in monthly installments.
Total amount to be paid in installments = Balance + Interest = GHC 20,000 + GHC 6,000 = GHC 26,000.
Number of months = 2 years $\times$ 12 months/year = 24 months.

$$\text{Monthly installment} = \frac{\text{Amount to be paid in installments}}{\text{Number of months}}$$ $$\text{Monthly installment} = \frac{\text{GHC } 26,000}{24}$$ $$\text{Monthly installment} = \text{GHC } 1,083.333...$$

Rounding to two decimal places:

$$\text{Monthly installment} = \text{GHC } 1,083.33$$