A freezer can be bought on hire purchase by making a deposit of 15% of the cash price which is $2 975. Interest which is equivalent to 20% of the outstanding balance is charged. The amount payable is paid
in 12 monthly instalments.
Calculate for the freezer:
a) the deposit
b) the hire purchase price
c) the difference between the hire purchase and the cash price
d) the difference as a percentage of the cash price.