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

A car is purchased on hire-purchase. The cash price is $21 000 and the

1.	A car is purchased on hire-purchase. The cash price is $21 000 and the terms are a depositÂ of 10% of the price, then the balance to be paid off over 60 equal monthly instalments.Â Interest is charged at 12% p.a.Â What is the monthly instalment?
A.	503
B.	504
C.	505
D.	5.06
Answer» C. 505