# 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? with Answer - Maths Mcqs | TestPrep

> Solved MCQ: 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. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# 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?

Direct Answer & Quick Reference

The correct option is **B. $504**.

A. $503

B. $504 **(Correct Answer)**

C. $505

D. $506

✨ Explain with AI

Verified Key: B. $504
Solved by 3,381+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/a-car-is-purchased-on-hire-purchase-the-cash-price-is-21-000-and-the-terms-are-a-9c078b19-e44a-4776-a569-18ed48c4b56c*
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