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5 December, 00:21

The cash price of a gas stove was X ringgit. Roy bought the stove by making a RM100 down payment and the balance was settled by making 24 monthly payments of RM55 each. If the interest rate charged was 10% on the original balance, find: a) The cash price of the stove. b) The original unpaid balance.

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  1. 5 December, 00:47
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    a) The cash price of the gas stove was 1300 ringgit

    b) The original unpaid balance = 1200 ringgit

    The original unpaid balance including interest = 1320 ringgit

    Step-by-step explanation:

    Given:

    Cash price of the gas stove = X ringgit

    Down payment = RM100

    Total monthly payments = 24

    Each payment = RM55

    Interest rate charged = 10%

    now,

    After down payment,

    Remaining balance = RM (X - 100)

    Balance after interest = RM (X - 100) * (1 + r)

    = RM (X - 100) * (1 + 0.1)

    = RM (1.1X - 110)

    also,

    amount paid in total installments

    = 24 * RM55

    = RM1,320

    and,

    RM1,320 = RM (1.1X - 110)

    or

    1.1X = 1,430

    or

    X = 1300

    Hence,

    a) The cash price of the gas stove was 1300 ringgit

    b) The original unpaid balance = X - 100

    = 1300 - 100

    = 1200 ringgit

    and,

    after including interest

    The original unpaid balance = 1.1 (X - 100)

    = 1.1 * (1300 - 100)

    = 1320 ringgit
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