TestUstad
Moderate

A car is purchased on hire-purchase. The cash price is $21 000 and the terms are a deposit of 10% of the price, then the balance to be paid off over 60 equal monthly installments. Interest is charged at 12% p.a. What is the monthly installment?

Correct answer: B. $504

  • A. $503
  • B. $504
  • C. $505
  • D. $506Education

Explanation

The 10% deposit is $21,000 x 10% = $2,100, leaving $18,900. Over 5 years, simple interest is $18,900 x 12% per year x 5 years = $11,340, so the total paid in instalments is $30,240 and each of 60 monthly instalments is $30,240 ÷ 60 = $504. Option a, $503, is usually caused by rounding too early.

Last updated

About Percentages

Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.

Practise Arithmetic

1,060 free Arithmetic MCQs from Mathematics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Start a free Arithmetic testAll Arithmetic MCQs

Exams that ask Mathematics questions like this

Mathematics is on 67 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

NET Mathematics80 MCQsATS Mathematics30 MCQsCTS Mathematics30 MCQsECAT Mathematics30 MCQsETEA Engineering Admission Test Mathematics30 MCQsETEA Recruitment Tests Mathematics30 MCQsGAT General Mathematics30 MCQsGIKI Mathematics30 MCQsNAT Mathematics30 MCQsNED Mathematics30 MCQsNTS Mathematics30 MCQsOTS Mathematics30 MCQsPIEAS Mathematics30 MCQsPTS Mathematics30 MCQsSTS Mathematics30 MCQsUTS Mathematics30 MCQsBCAT Mathematics25 MCQsISSB Mathematics25 MCQsPAF Mathematics20 MCQsPakistan Army Commissioned Officer Test Mathematics20 MCQsPakistan Navy Test Mathematics20 MCQsPatwari Test Mathematics20 MCQsPMA Long Course Test Mathematics20 MCQsPMD Mathematics20 MCQsComputer Operator Test Mathematics15 MCQsDEO Mathematics15 MCQsEducators ESE Test Mathematics15 MCQsEducators SESE Test Mathematics15 MCQsEducators SST Test Mathematics15 MCQsFBR Mathematics15 MCQsJEST Mathematics15 MCQsJunior Clerk Test Mathematics15 MCQsLAT Mathematics15 MCQsNADRA Mathematics15 MCQsPST Mathematics15 MCQsSub Registrar Test Mathematics15 MCQsAJKPSC Mathematics10 MCQsAssistant BS-16 Test Mathematics10 MCQsBPSC Mathematics10 MCQsECP Mathematics10 MCQsFIA Mathematics10 MCQsFPSC Mathematics10 MCQsGBPSC Mathematics10 MCQsIB Mathematics10 MCQsKPPSC Mathematics10 MCQsMES Mathematics10 MCQsNAB Mathematics10 MCQsNational Highways and Motorway Police Test Mathematics10 MCQsPakistan Railways Recruitment Test Mathematics10 MCQsPCS Mathematics10 MCQsPIA Mathematics10 MCQsPPSC Mathematics10 MCQsPunjab Police ASI Test Mathematics10 MCQsPunjab Police Sub Inspector Test Mathematics10 MCQsSNGPL Mathematics10 MCQsSPSC Mathematics10 MCQsTehsildar and Naib Tehsildar Test Mathematics10 MCQsWAPDA Mathematics10 MCQsANF Mathematics5 MCQsASF Mathematics5 MCQsCTD Mathematics5 MCQsElite Police Force Test Mathematics5 MCQsPakistan Army Soldier Test Mathematics5 MCQsPakistan Rangers Test Mathematics5 MCQsPERA Force Test Mathematics5 MCQsPunjab Police Constable Test Mathematics5 MCQsRescue 1122 Test Mathematics5 MCQs

Related questions

10 % of the electorate did not cast their votes in an election between two candidates. 10 % of the votes polled were found invalid. The successful candidate got 54 % of the valid votes and won by a majority of 1620 votes. The number of voters enrolled on the voter's list was___________?

12.5 + 10 1/4 of 100 ÷ 10% of 10 = ____________?

16.66% of 33.33% of 66.66% of ? = 30

20% of 40 + ? % of 80 = 120

25% of 30% of 45% is equal to__________?