A man bought a television set on hire purchase for N25,000, out of which he paid N10,000, if he is allowed to pay the balance in eight equal installments, find the value of each installment.

A.

N1250

B.

N1578

C.

N1875

D.

N3125

Correct answer is C

Price of television = N25,000

Paid N10, 000

Remainder = N(25,000 - 10,000)

= N15,000

Eight equal installments = \(\frac{15,000}{8}\)

= N1,875 per installment.