Sometimes an item is bought or paid for over a period of time. The customer pays a deposit or down payment and the balance are paid weekly or monthly (called installments). This payment arrangement is referred to as hire purchase.
Price: $4200 | or Deposit: $1000 , HP: 12 monthly payments of $350
Marsha bought a stove on hire purchase. How much would she pay for the stove instead.
Balance owing = $4200 – $1000 = $3200
Total monthly payment = $350 x 12 = $4200
Total payment = $3200 + $4200 = $7400
Thus, Marsha will pay $7400.
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Hire purchase: 10% down payment
and $200 for 25 months
Mr. Daniel wants to buy a television on hire purchase. How would he pay for the television under this type of payment?
Correct 10 / 10 PointsIncorrect / 10 Points
Down payment = % of $ =
= = $
Total installments = $ x months =
Total payment for the TV = $ = $
Answer = Mr. Daniel will pay for the television.
Hire purchase: No down payment
Just: $400 for 12 months
Vishnu bought an oven. Calculate the price he pays for the oven?
Correct 4 / 4 PointsIncorrect / 4 Points
Total installment = $ x = $
Answer = Vishnu pays for the oven.
Calculate the weekly installments that must have been paid for a power saw which cost $2,300, if Mr. Owen paid a deposit of $250 and paid the balance in 30 weeks?
Correct 5 / 5 PointsIncorrect / 5 Points
Installments = $ = $
Amount of payment each week = = $
Answer= Weekly installment is .
Cash price: $1200
Hire Purchase: $200 per month | Down payment: $15%
Richard works in an electronic store and is purchasing a CD player. The owner told him that he could make a down payment of 15% and the balance would be deducted monthly from her salary for 12 months. How much more would Richard pay for the CD player under hire purchase?
Correct 12 / 12 PointsIncorrect / 12 Points
Down payment = $ % of $
= x $ = $
Total Installments = $ x = $
Total payment = $ = $
Richard will pay = $ = $ more⇐ Answer
Installment: 24 weeks $250 per week
Discount Special for this week ONLY- 15% off
Mrs. Cummings is buying a television and stove. In the store she notices the above deals for the items.
- Find the total cost of the items she wishes to buy.
- How much would she pay on hire purchase for the two items?
- What is the amount saved if Mrs. Cummings paid cash?
Correct 21 / 21 PointsIncorrect / 21 Points
1) Total cost of items = = $
2) Amount she pays on hire purchase
10% Deposit = % of = $
Total Installments = $ x = $
Total Payment for the items = $ = $ ⇐ note: Don’t forget place holders.
Answer = Amount she would pay on HP is $
3) Amount she pays by cash:
cash payment discount = %
Therefore, Mrs. Cummings pays: % – % = %
Cash payment: 85% discount = % of $ =$
Amount saved paying cash this week = $ = $
Answer = She saves when she pays cash this week.