Question

The hire purchase price for a flat screen TV is 25% more than the cash price.kamuyu bought the TV on hire purchase terms by paying a deposit of sh.14,000 and the remaining amount in 8 equal installment of sh.2,000 each.what was the cash price of the TV?​

Answer 1

sh. 24,000

Explanation:

Given that the hire purchase price for a flat screen TV is 25% more than the cash price. If kamuyu bought the TV on hire purchase terms by paying a deposit of sh.14,000 and the remaining amount in 8 equal installment of sh.2,000 then the total amount paid by Kamuyu on hire purchase

= 14000 + 8(2000)

= 14000 + 16000

= sh. 30,000

Recall that the hire purchase price is 25% more than the cash price. Let the cash price be C then,

1.25C = 30,000

Divide both sides by 1.25

C = 30000/1.25

= sh. 24,000

The cash price for the TV is sh. 24,000