The hire purchase price for a T.V set is made up of $4,000 deposit and 18 equal monthly installments of $1,200 each. Amos was given a discount of 20% on the hire purchase price on paying the cash for the T.V set. How much did he pay?
I usually don't answer questions when students keep switching names, but I was curious.
What is a hire purchase, not familiar with it.
Is it just an instalment plan?
Also, are these regular US or CND dollars ?
The costs appear exorbitant.
To find out how much Amos paid, we need to calculate the original hire purchase price and then apply the 20% discount.
First, let's calculate the original hire purchase price by adding the deposit and the total of the monthly installments:
Original hire purchase price = Deposit + (Monthly installment x Number of installments)
Original hire purchase price = $4,000 + ($1,200 x 18)
Original hire purchase price = $4,000 + $21,600
Original hire purchase price = $25,600
Next, let's calculate the discount amount:
Discount amount = (Original hire purchase price x Discount percentage)
Discount amount = $25,600 x 0.20
Discount amount = $5,120
Finally, let's calculate the amount Amos paid by subtracting the discount amount from the original hire purchase price:
Amount paid by Amos = Original hire purchase price - Discount amount
Amount paid by Amos = $25,600 - $5,120
Amount paid by Amos = $20,480
Therefore, Amos paid $20,480 for the T.V set.