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Part 4:
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More Complex Arithmetic Skills |
| Hire Purchase This is a very common method of buying on credit. You pay a deposit followed by regular monthly payments for a period of time. You don't actually own the item until your last payment. By the end of the payment time you will have paid more than the cash price of the item, but you will have had its use for all that time. The extra that you have paid is called the interest. Example 4.1 A television set has a cash price of £429.99, but it can be bought for a deposit of 15% followed by equal monthly payments over two years of £16.99. Calculate how much more has been paid than the cash price of the TV. |
