A computer may be bought for £1,490 cash or on hire purchase terms.
Ken bought the computer on hire purchase terms.
The hire purchase terms require a deposit of 20% of the cash price. After payment of the deposit, the remaining balance owing is increased by interest charges of 17%, and this new balance is paid in 24 equal monthly installments.
(a) Calculate:
(i) the amount of the deposit
(ii) the balance owing
(iii) the total interest charges
(iv) the total cost to Bruce
(v) the amount of each monthly installment