Worksheet On Hire Purchase

WORKSHEET ON HIRE PURCHASE Exercise Answer the following. 1. The marked price of a television set is $6,980. If the consumer pays by cash, then the price is 12% below the marked price. If the set is bought on hire purchase, then the buyer pays a downpayment of $628.20 and 24 monthly installments of $344.06 each. Determine for the television, the: a. cash price Answer $6142.40 b. hire purchase price Answer $8885.64 c. difference between the hire purchase price and the marked price Answer $1905.64 d. percentage interest charged on the outstanding balance. Answer 29.99% or 30% 2. The cash price of a laptop is $1,299. It can be bought on hire purchase by making a deposit of $350 and 10 monthly payments of $120 each. a. What is the TOTAL hire purchase price of the laptop? Answer $1,550 b. How much is saved by buying the laptop for cash? Answer $251

3. A housewife purchased a video recorder with a cash price of $2,980 under hire purchase terms. She paid an initial down payment of 20% of the cash price and interest which is equivalent to 15% of the outstanding balance is charged. The balance is paid in 18 equal monthly instalments. Calculate for the video recorder the: a. hire purchase price Answer $3337.60 b. amount of each monthly instalment Answer $152.31 c. difference between the hire purchase price and the cash price. Answer $357.60 d. interest charged. Answer $357.60 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? Answer $354 b. Calculate the difference between the hire purchase price and the cash price. Answer $34.05 c. Express your answer in part b as a percentage of the cash price. Answer 10.64%

5. A freezer can be purchased by cash for $3475 or on higher purchase for a deposit of 25% and 24 equal monthly installments of $130.31. Determine for the freezer the: a. deposit Answer $868.75 b. amount payable Answer $3127.44 c. outstanding balance Answer $2606.25 d. hire purchase price Answer $3996.19 e. interest Answer $521.19 f. percentage interest charged Answer 20%

6. The retail price of a television set is $4,500. If the buyer pays by cash, the price is 10% below the retail price. If the set is bought on higher purchase, the buyer pays a down payment of $675 and 24 monthly installments of $212.50. Calculate for the television the: a. cash price to the buyer, if he pays by cash Answer $4050

b. amount payable Answer $5100 c. outstanding balance Answer $3825 d. hire purchase price Answer $5775 e. interest Answer $1275 f. difference between the hire purchase and the cash price Answer $1725 g. percentage interest charged Answer 33.3% h. difference between the hire purchase and the cash price as a percentage of the retail price. Answer 38.3% 7. A computer can be bought on hire purchase by making a deposit of $1360 and 40 monthly installments of $442 each. Calculate the hire purchase price of the computer. Answer $19040 8. The marked price of a radio is $3,000. There is a discount of 15% for cash payment. To obtain the radio on hire purchase, a deposit of $595 and 18 monthly installments of $159.50 each are required. Determine for the radio, the: a. cash price Answer $2550

b. hire purchase price Answer $3466 c. difference between the cash price and the hire purchase price as a percentage of the marked price. Answer 30.53%