Question

Fred bought a computer from W-Tech Ltd. on hire purchase by making a down-payment of $1 500 and twelve monthly payments of $250 each.

(i) Calculate the total hire purchase price.

If the hire purchase price yields a profit of 20% to W-Tech Ltd, what was the cost price of the computer?

Answer 1

Answer:

$225.00

Step-by-step explanation:

250 x 12 = $3000

               + $1500

                   -----------

                  4500                                      20/4500 = 225  

Answer 2

Given:

downpayment = $1500

12 monthly payment of $250

To Find:

(1) Total hire purchase price

(2) The cost price if the profit is 20%

Solution

Find the total hire purchase price

Downpayment = $1500

Total monthly payment = 250 x 12

Total monthly payment = $3000

Total hire price = 1500 + 3000

Total hire price = $4500

Find the cost price

Cost Price = 100%

Profit = 20%

Selling Price = 100 + 20

Selling Price = 120%

Selling Price = 120%

Selling Price = $4500

120% = $4500

1% = 4500 ÷ 120

1% = $37.50

100% = 37.50 x 100

100% = $3750

Answer: (1) Total Price Purchase = $4500 (2) Cost Price = $3750