Question

A Computer can be bought on hire purchase by making a deposit of the 15% on the marked price which is $2975. Interest which is equivalent to 15% of the outstanding balance is charged. The amount payable is made in 12 equal monthly instalment.


a. Calculate for the freezer:
(i) The deposit
(ii) The amount of each instalment
(iii) The hire purchase price.


b. If a discount of 12% is given for cash, calculate:

(i) The cash price
(ii) The difference between the hire purchase price and the cash price
(iii) The difference as a percentage of the marked price.

Answer 1

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