Reference no: EM131088553
Joash wants to buy a £12,600 car on hire purchase. Companies A and B offer the following terms:
Company A:
£1,250 deposit, plus 12 monthly payments of £1,100 each.
Company B:
€1,700 deposit, plus 12 monthly payments of €1,500
(a) Using a conversion of €1 = £0.72, compare the deposits, the monthly payments, and the total cost of purchase and advise Thomas on which company is cheaper.
Company C offers the following terms:
10% deposit, plus £13,950 paid in equal monthly installments over one and a half years.
(b) Calculate the deposit, monthly payment and total cost of purchase with Company C
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: Using a conversion of €1 = £0.72, compare the deposits, the monthly payments, and the total cost of purchase and advise Thomas on which company is cheaper.
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