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Let's go through the problem step by step.

The insurance cost is £840. Mr. Jackson has two payment options:
1. Pay the full amount within seven days and receive a 5% discount.
2. Pay by direct debit, which will cost 8% more, in 12 equal monthly payments.

The part (a) of the problem asks, *If Mr. Jackson chooses direct debit, how much will his monthly payment be?*

### Step-by-Step Solution:

1. **Original amount**: £840
2. **8% increase for direct debit**:  
   To calculate the new total amount with the 8% increase, we use:
   \[
   840 \times 1.08 = 907.20
   \]
   So, the total amount paid if he chooses direct debit is £907.20.
3. **Monthly payments**:  
   Since this amount will be paid in 12 equal monthly payments, we divide:
   \[
   907.20 \div 12 = 75.60
   \]
   Therefore, Mr. Jackson’s monthly payment will be **£75.60**.

Would you like more details or have any further questions on this?

Here are 5 related questions:
1. How much would Mr. Jackson pay if he took the 5% discount?
2. What would the savings be for paying upfront instead of by direct debit?
3. What is the total additional amount Mr. Jackson pays due to the 8% increase?
4. If the insurance cost was £1000, how would the monthly direct debit change?
5. How would the monthly payment change if the direct debit increase was 10% instead of 8%?

**Tip**: When working with percentage increases or decreases, multiplying by \(1 \pm \text{percentage as decimal}\) is a quick way to find the adjusted amount.

Mr. Jackson's car insurance is £840. He can either pay the full amount within seven days and receive a 5% discount, or pay by direct debit, which will cost 8% more. The direct debit is paid in 12 equal monthly amounts. (a) If he chooses direct debit, how much will his monthly payment be?

Learn how to calculate monthly payments for a car insurance policy costing £840, with an 8% increase for direct debit. This problem explores percentage increases and equal monthly payment division. Suitable for students in Grades 7-9.

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