Question

Jane bought a Living-room Set on the Hire Purchase Plan. CASH PRICE: $3600 HIRE PURCHASE PLAN: $700 DOWN PLUS 20 PAYMENTS OF $200.00 EACH. Use this information to answer questions 2 a to c.

(2 a) Calculate the total monthly payments.

A) $4000.00
B) $4700.00
C) $1100.00
D) $3600.00

(2 b) What is the total cost of the Set on the hire purchase plan?
A) $1100.00
B) 4000.00
C) $4700.00
D) $3600.00

(2 c) Find Keanna's savings if she had bought it cash. *

A) $4700.00
B) $4000.00
C) $1100.00
D) $400.00

Answer 1

24 ($175) = $4200 the hire purchase price $1500 + $4200

the amount saved by paying cash.

$5700 - $5500 = $200 saved by paying

Dion bought a new keyboard on

hire-purchase. The cash price was $2400.

He paid a 25% deposit followed by 24

monthly payments of $120 each.

$2400 * .25 = $600

the total monthly payments made

$120 * 24 = $2880

the hire purchase price $600 + $2880 = 3480

$3480 - $2400 = $1920