Question

new TV costs R6 900 cash. It is available on hire purchase with a deposit of 15% followed by 12 instalments of R558.50. Find the total hire purchase price and the extra amount that you would pay (on top of the cash price) using hire purchase​

Answer 1

well, we know the cash price, that is, if you have cash burning your pockets, is R6900 bucks, however you'd rather do it in installments, or hire purchase with a downpayment of 15% of 6900, hmmm how much is that?

`\begin{array} \cline{1-1} \textit{\textit{\LARGE a}\% of \textit{\LARGE b}}\\ \cline{1-1} \\ \left( \cfrac{\textit{\LARGE a}}{100} \right)\cdot \textit{\LARGE b} \\\\ \cline{1-1} \end{array}~\hspace{5em}\stackrel{\textit{15\% of 6900}}{\left( \cfrac{15}{100} \right)6900}\implies 1035`

now, to that downpayment let's add the 12 installments of R558.50

`\stackrel{downpayment}{1035}~~ + ~~\stackrel{ installments }{(12)(588.50)}\implies 1035+6702\implies \text{\LARGE 7737}`

ohhh man!!! you ended up paying 7737 - 6900 = 837 more on hire purchase.