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Megan buys a car for £7,700 plus 20% VAT. She pays a deposit for the car and then pays the rest in 12 equal instalments of £642.50. How much did Megan pay as a deposit?

7700 x 1.2 = 9240 (total cost of car)12 x 642.5 = 7710 (total cost of instalments)9240 - 7710 = 1530Answer = £1,530

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