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CCSLC Mathematics study materials
CCSLC Mathematics study resources

CCSLC Mathematics: Informed Decision Making

CCSLC Mathematics · Work through your exam, one topic at a time.

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Informed Decision Making

Informed Decision Making is the CCSLC Mathematics domain where the mathematics must end in a choice. Questions present realistic options - pay cash or buy on hire purchase, choose between two tariffs, take the larger package or the smaller one, buy now or save first - and expect you to compare them on a common basis, then state which you recommend and why. Financial contexts dominate: wages, overtime, discount, VAT, simple interest, hire purchase, utility bills and budgets.

Comparing options fairly

  • Bring every option to a total cost over the same period, including deposit, instalments, interest, fees, delivery and running costs.
  • Find the extra cost of credit: total paid minus the cash price. Express it as a percentage of the amount actually financed (cash price minus deposit), and per year when the terms differ in length.
  • Test affordability against monthly income and existing commitments, not just the grand total.
  • Weigh the non-money factors the question mentions: warranty, delivery time, spoilage, risk, flexibility, and whether the item will earn income.

Worked example

A sewing machine costs EC$2,400 cash. Hire purchase requires a EC$400 deposit and 12 monthly payments of EC$190. Total hire purchase = 400 + 12 × 190 = 400 + 2,280 = EC$2,680. Extra cost of credit = 2,680 − 2,400 = EC$280. The amount financed is 2,400 − 400 = EC$2,000, so the extra is 280 ÷ 2,000 × 100 = 14% over the year. The decision depends on the circumstances given. A buyer who can save EC$200 a month will have EC$2,400 within a year and should wait if the machine is not needed now. A buyer who needs it immediately to take in paid work may reasonably pay the EC$280, provided the EC$190 instalment fits the monthly budget - but the machine must then generate more than EC$280 of extra income for the credit to pay for itself.

Traps that cost marks

  • Comparing the deposit with the cash price instead of the total paid.
  • Leaving out fees, insurance, VAT or delivery.
  • Taking the percentage of the full price rather than the amount financed.
  • Choosing the lowest monthly payment when it carries the highest total.
  • Comparing terms of different lengths without adjusting.
  • Giving a decision with no numbers or no reason attached.