Question

The cost of buying a radio for cash is k4200.00. The same radio can be bought on hire purchase by paying a deposit of k1500.00 plus 9 equal installments of k420.00. kasamba wants to buy the radio on hire purchase. How much more will he pay on hire purchase

Answer 1

To calculate how much more Kasamba will pay on hire purchase, we need to compare the total cost for cash and on hire purchase. The total cost for cash is k4200, and the total cost on hire purchase is k5280. Therefore, Kasamba will pay k1080 more on hire purchase.

Step-by-step explanation:

To calculate how much more Kasamba will pay on hire purchase, we need to compare the total cost of buying the radio in cash with the total cost of buying it on hire purchase.

For cash:
Total cost = k4200

For hire purchase:
Total cost = Deposit + 9 monthly installments
Total cost = k1500 + (9 x k420)
Total cost = k1500 + k3780
Total cost = k5280

Therefore, Kasamba will pay k5280 - k4200 = k1080 more on hire purchase.