The cash price of the stereo set was $1850. The hire purchase was 20% more than the cash price.

(i)Calculate the hire purchase price.

(ii) Calculate the number of monthly installments needed to buy a stereo in hire purchase given that a down payment of $500 and monthly installments of $215 each were required.

Question

The cash price of the stereo set was $1850. The hire purchase was 20% more than the cash price.

(i)Calculate the hire purchase price.

(ii) Calculate the number of monthly installments needed to buy a stereo in hire purchase given that a down payment of $500 and monthly installments of $215 each were required.

slaaibak · Answer

If it's 20% more, the hire purchase price is 1850 * 1.2 = 2220

For the next one, assuming the interest rate is 0:

(2220 - 500) / 215 = 8 monthly payments

anonymous · Answer

@slaaibak  oh okay