Raya buys a van for £8500 plus VAT at 20%. Raya pays a deposit for the van. She then pays the rest of the cost in 12 equal payments of £531.25 each month. Find the ratio of the deposit Raya pays to the total of the 12 equal payments.
First find total cost with VAT. £85001.2 = £10200
To find deposit:£10200 - (12£531.25) = £ 3825
To find ratio:3825 : (12*531.25)3825 : 63751 : (6375/3825)1 : 1.6.
MP
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