Question

the advance amount under hire purchase system is called​

Answer 1

Down Payment

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Answer 2

Answer:

The advance amount under hire purchase system is called​ down payment.

Explanation:

Hire purchase is a type of agreement in which the purchaser agrees to pay a portion of the purchase price known as a down payment to the supplier at the time of purchase, and the balance is paid in instalments with interest charged at a fixed percentage. Hire purchase is a method of purchasing high-priced consumer goods in which the buyer pays a deposit and then pays the balance plus interest in monthly instalments. In the United Kingdom, the term "hire purchase" is commonly used, while in the United States, the term "instalment plan" is more commonly used. If a down payment is required, it refers to the amount that must be paid by the hire-purchaser to the hire vendor at the start of the hire-purchase agreement. the interest rate levied by the hire vendor.