The cash price for a Tedelex Component system with a DVD is 1999.95.If you buy the system on hire purchase you must pay a deposit of 200.00 and an instalment of 91.00 per month for 24 months. (A)The total amount you would pay for the system on hire purchase??
(b)the difference between the hire purchase amount and the cash price of the system?
(C)the percentage increase if you buy the system on terms .( 'on terms'means on hire purchase)
(91 * 24 ) + 200 = ________
To find the answers to the given questions, let's break down the calculations step by step.
(A) The total amount you would pay for the system on hire purchase:
- Deposit: $200.00
- Monthly installment: $91.00
- Number of months: 24
To calculate the total amount on hire purchase, we need to consider both the deposit and the monthly installments:
Total amount = Deposit + (Monthly installment × Number of months)
Total amount = $200.00 + ($91.00 × 24)
Total amount = $200.00 + $2,184.00
Total amount = $2,384.00
So, the total amount you would pay for the system on hire purchase would be $2,384.00.
(B) The difference between the hire purchase amount and the cash price of the system:
To calculate the difference, we subtract the cash price from the hire purchase amount:
Difference = Total amount on hire purchase - Cash price
Difference = $2,384.00 - $1999.95
Difference = $384.05
The difference between the hire purchase amount and the cash price of the system is $384.05.
(C) The percentage increase if you buy the system on terms:
To calculate the percentage increase, we need to find the percentage difference between the cash price and the hire purchase amount. We can use the following formula:
Percentage increase = (Difference / Cash price) × 100
Percentage increase = ($384.05 / $1999.95) × 100
Percentage increase = 0.1921 × 100
Percentage increase ≈ 19.21%
So, the percentage increase if you buy the system on hire purchase (terms) is approximately 19.21%.