Question

in Hire purchase, the amount payable on the date of agreement is called as ______.



1) Installment amount

2) Down payment

3) Principal

4) Up payment

Submit


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Answer 1

Answer:

2) Down payment

In Hire purchase, the amount payable on the date of agreement is called down payment

Explanation:

Down payment refer to the initial made on the date of agreement when something is bought on credit. For example if a person wants to buy a car worth 1.5 million and he doesn't have the full amount. They can agree with the seller to keep for him that vehicle after he has made a deposit of 500,000. That deposit of 500,000 is know as down payment then after he has cleared the remaining balance he will take the car