A car is purchased on hire-purchase. The cash price is $21 000 and the terms are a deposit of 10% of the price, then the balance to be paid off over 60 equal monthly instalments. Interest is charged at 12% p.a. What is the monthly instalment? Select.
A) $ 503 B) $ 504 C) $ 505 D) $ 506 E) $ 507

Rationale: explanation : cash price = $ 21 000 deposit = 10 % × $ 21 000 = $ 2100 loan amount = $ 21000 − $ 2100 = $ 18900 i = p * r * t / 100 i = 11340 total amount = 18900 + 11340 = $ 30240 regular payment = total amount / number of payments answer : b
Answer: B