A cash price of a car is N$ 112000. To buy the car on hire purchase, a deposit of N$15680
is required followed by 30 monthly instalments of N$ 3300 each.
2.2 How much more than the cash price is paid on hire purchase?
To find out how much more than the cash price is paid on hire purchase, we need to calculate the total amount paid on hire purchase and then subtract the cash price.
The deposit is N$15680 and each monthly installment is N$3300. There are 30 monthly installments, so the total payment on hire purchase is 15680 + (3300 * 30) = N$109480.
Now we can subtract the cash price of N$112000 from the total payment on hire purchase of N$109480 to find out how much more is paid on hire purchase: 109480 - 112000 = N$-2520.
Therefore, N$2520 less is paid on hire purchase compared to the cash price.
To calculate how much more than the cash price is paid on hire purchase, we can calculate the total amount paid on hire purchase and then subtract the cash price from it.
The deposit amount is N$ 15680.
The monthly installment amount is N$ 3300.
The total amount paid on hire purchase can be calculated as follows:
Total amount paid = Deposit + Total monthly installments
Total amount paid = N$ 15680 + (N$ 3300 * 30)
Total amount paid = N$ 15680 + N$ 99000
Total amount paid = N$ 114680
Now, to find the amount paid more than the cash price:
Amount paid more than cash price = Total amount paid - Cash price
Amount paid more than cash price = N$ 114680 - N$ 112000
Amount paid more than cash price = N$ 2680
Therefore, N$ 2680 more than the cash price is paid on hire purchase.