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
Step 1: Calculate the amount of deposit. The cost price of the car is GHC 25,000.00. The deposit is 20% of the cost price. Deposit = 20\% × GHC 25,000.00 Deposit = 0.20 × 25,000 Deposit = GHC 5,000.00 a) The amount of deposit is GHC 5,000.00. Step 2: Calculate the balance to be paid. The balance is the cost price minus the deposit. Balance = Cost Price - Deposit Balance = GHC 25,000.00 - GHC 5,000.00 Balance = GHC 20,000.00 b) The balance to be paid is GHC 20,000.00. Step 3: Calculate the interest on the balance and the total amount paid for the car. 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 Interest = P × R × T Interest = 20,000 × 0.15 × 2 Interest = 3,000 × 2 Interest = GHC 6,000.00 The total amount paid for the car is the deposit plus the balance plus the interest on the balance. Total amount paid = Deposit + Balance + Interest Total amount paid = 5,000 + 20,000 + 6,000 Total amount paid = GHC 31,000.00 c) The total amount paid for the car is GHC 31,000.00. Step 4: Calculate the monthly installment. 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 × 12 months/year = 24 months. Monthly installment = Amount to be paid in installmentsNumber of months Monthly installment = GHC 26,00024 Monthly installment = GHC 1,083.333... Rounding to two decimal places: Monthly installment = GHC 1,083.33 d) The monthly installment is GHC 1,083.33. What's next?