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An entrepreneur bought a washing machine on hire purchase. The cash price of the machine was Sh 800,000. An initial deposit of 20% of the...

      

An entrepreneur bought a washing machine on hire purchase. The cash price of the machine was Sh 800,000. An initial deposit of 20% of the cash price was paid. A flat interest rate of 15% was charged on the outstanding balance for the period of repayment. The balance plus the interest were payable in 36 equal monthly installments. A customer who purchases the machine on cash basis receives a 10% discount on the cash price.
Required.
The amount of money saved if the machine is bought on cash basis.

  

Answers


Kavungya
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Kavungya answered the question on May 20, 2021 at 08:36


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