The cash price for the Teledex 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
Calculate:
(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?
Can't you do the part I suggested in the last post?
To calculate the total amount you would pay for the system on hire purchase, you need to calculate the total installment payments plus the initial deposit.
(a) Total amount on hire purchase:
Deposit = $200.00
Monthly installment = $91.00
Number of months = 24
Total installment payments = Monthly installment x Number of months
Total installment payments = $91.00 x 24 = $2184.00
Total amount on hire purchase = Total installment payments + Deposit
Total amount on hire purchase = $2184.00 + $200.00 = $2384.00
Therefore, the total amount you would pay for the system on hire purchase is $2384.00.
(b) Difference between hire purchase amount and cash price:
Hire purchase amount = $2384.00 (from part (a))
Cash price = $1999.95
Difference = Hire purchase amount - Cash price
Difference = $2384.00 - $1999.95 = $384.05
Therefore, the difference between the hire purchase amount and the cash price of the system is $384.05.
(c) Percentage increase if you buy the system on terms:
Percentage increase = (Difference / Cash price) x 100
Percentage increase = ($384.05 / $1999.95) x 100
Percentage increase ≈ 19.21%
Therefore, the percentage increase if you buy the system on terms is approximately 19.21%.