Question

The hire purchase price of a fridge is 16400. 25% is paid as deposit, the rest is spread over 12 equally monthly instalments. If the cash price is 20% less the hire purchase pries, (a) find the costs price of the fridge (b) calculate the deposit (c) what is the monthly installments (d) what is the differences between the cash price and the hire purchase prie

Answer 1

Answer: a. 13120

b. 4100

c. 1025

d. 3280

Step-by-step explanation:

(a) find the costs price of the fridge

Since the cash price is 20% less the hire purchase price, then the cost of the fridge will be:

= (100% - 20%) × 16400

= 80% × 16400

= 0.8 × 16400

= 13120

(b) calculate the deposit

Since 25% is paid as deposit, the deposit will be:

= 25% × 16400

= 0.25 × 16400

= 4100

(c) what is the monthly installments

Monthly installments will be:

= (16400 - 4100)/12

= 12300/12

= 1025

(d) what is the differences between the cash price and the hire purchase price.

This will be:

Hire purchase price = 16400

Cash price = 13120

= 16400 - 13120

= 3280