The cash price of a television set is $10 000.00 .A woman buys the television set on hire purchase by making a 20% down payment and paying off the balance in 12 equal installments of $800.00 .The amount saved if the television set was bought for cash is? ​

The amount that'll be saved if the television was bought for cash is $1600.

Cash price of television = $10000

Amount paid through hire purchase will be:

= (20% × $10000) + ($800 × 12)

= (0.2 × $10000) + $9600.

= $2000 + $9600.

= $11600

The amount that could have been saved will be:

= $11600 - $10000.

= $1600

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