6. A vehicle is offered for sale at a cash price of $$ \$ 25000.00 $$. It can also be purchased on hire purchase with a deposit of $$ 20 \% $$ and monthly instalments of $$ \$ 200.00 $$ per month over a period of 10 years. Determine: $$ \begin{array}{ll} ext { a the amount of the deposit } & ext { b the outstanding balance }\end{array} $$

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6. A vehicle is offered for sale at a cash price of $$ \$ 25000.00 $$. It can also be purchased on hire purchase with a deposit of $$ 20 \% $$ and monthly instalments of $$ \$ 200.00 $$ per month over a period of 10 years. Determine: $$ \begin{array}{ll}	ext { a the amount of the deposit } & 	ext { b the outstanding balance }\end{array} $$

UpStudy AI · Accepted Answer

1. **Determine the deposit amount**

The deposit is $$ 20\% $$ of the cash price. The cash price is $$\$25000.00$$, thus the deposit $$D$$ is given by
   $$
   D = 0.20 \times 25000 = 5000.
   $$
   So, the amount of the deposit is $$\$5000.00$$.

2. **Determine the outstanding balance**

The outstanding balance is the remaining amount after the deposit has been paid. It is calculated by subtracting the deposit from the cash price:
   $$
   \text{Outstanding Balance} = 25000 - 5000 = 20000.
   $$
   Hence, the outstanding balance is $$\$20000.00$$.
a. The deposit amount is \$5000.00. b. The outstanding balance is \$20000.00.

A vehicle is offered for sale at a cash price of . It can also be purchased on hire
purchase with a deposit of and monthly instalments of per month over a
period of 10 years. Determine:

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A vehicle is offered for sale at a cash price of . It can also be purchased on hire purchase with a deposit of and monthly instalments of per month over a period of 10 years. Determine: