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Hire Purchase Class Notes

Mary wants to buy a used car for $5,800. She pays a 20% deposit of the cost and finances the rest with a bank loan repayable in 3 installments of $1,856 each. The total she pays is calculated. A refrigerator costs $6,500 on hire purchase with a $500 deposit and $250 monthly payments. The number of payments and extra cost percentage are calculated. Furniture can be bought for a cash price of $880 or on hire purchase with a $216 deposit and $35 monthly payments for 2 years. The total hire purchase cost and extra percentage are found. A bicycle costs $319.95 cash or can be bought on hire purchase with a $69 deposit and 10 $

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Mr. Bachoo
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946 views

Hire Purchase Class Notes

Mary wants to buy a used car for $5,800. She pays a 20% deposit of the cost and finances the rest with a bank loan repayable in 3 installments of $1,856 each. The total she pays is calculated. A refrigerator costs $6,500 on hire purchase with a $500 deposit and $250 monthly payments. The number of payments and extra cost percentage are calculated. Furniture can be bought for a cash price of $880 or on hire purchase with a $216 deposit and $35 monthly payments for 2 years. The total hire purchase cost and extra percentage are found. A bicycle costs $319.95 cash or can be bought on hire purchase with a $69 deposit and 10 $

Uploaded by

Mr. Bachoo
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Hire Purchase

1. The cash price of a used car is $ 5 800. Mary pays a deposit of 20% of the cost of the
car and a bank agrees to lend her the remaining amount.
(a) Calculate the amount Mary has to deposit.
(b) If the bank requires Mary to repay the loan in three equal installments of
$ 1 856each. Calculate the total amount Mary pays in installments.
(c) Calculate the total amount that Mary would pay for the car.
(d) Calculate the percent profit that the bank makes.

2. The hire purchase price for a refrigerator is $ 6 500. A deposit of $ 500 is made and
the remainder is paid in equal monthly payments of $ 250.
(a) Calculate the number of monthly payments that must be made.
(b) If the cash price is $ 4 000, express as a percentage of the cash price, the
extra cost of buying on hire purchase.

3. (a) The cash price of a dining room suite with a table and six identical chairs is
$880. If the price of the table is $250, what is the price of EACH chair?

(b) The dining room suite may be bought on hire purchase for a deposit of $216
plus monthly payments of $35 for a period of two years. Calculate
(i) the total hire purchase of the suite
(ii) the extra cost of buying on hire purchase as a percentage of the cash
price.
4. The cash price of a bicycle is $319.95. It can be bought on hire purchase by making
a deposit of $69.00 and 10 monthly installments of $28.50 EACH.

(a) What is the TOTAL hire purchase price of the bicycle?


(b) Calculate the difference between the total hire purchase price and the cash
price.
(c) Express your answer in (b) above as a percentage of the cash price.

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