Question

A radio worth sh 55,000 has an option of being sold under hire purchase where a deposit of

shs 10,000 required while the installmente is sh 5,000 which last for a year
a) Determine price difference,​

Answer 1

Sh.15,000

Step-by-step explanation:

The price difference is the difference in value between the cash price and the hire purchase price.

The cash price =Sh 55,000

Hire purchase price = Deposit + installments

=Sh 10,000 + ( Sh 5000 x 12)

=Sh 10,000 + sh, 60,000

=Sh 70,000

The price difference = Sh.70,000 - Sh. 55,000

=Sh.15,000