A flat screen television costs $2000 cash. If bought on hire purchase, a consumer must make a deposit of $900 followed by 12 monthly payments of $120. How much can be saved if the television is bought at the cash price?​

Explanation:

Given

On hire-purchase:

Required

Determine the amount to be saved if the item is bought outrightly

First, we calculate the total payment on hire-purchase:

Subtract the cost price:

The amount to be saved is $340

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