Question

This month, the special price is J$7,450 for a product. If you choose to purchase it through hire purchase, you need to pay 10% of the purchase price upfront and then J$790 per week over 2 years. What is the total cost of the product if purchased through hire purchase?

Answer 1

The total cost of the product, if purchased through hire purchase, is J$82,905.

Step-by-step explanation:

If the special price for the product is J$7,450, and you choose to purchase it through hire purchase, you need to pay 10% of the purchase price upfront. That would be J$7,450 * 10% = J$745. Then, you need to pay J$790 per week over 2 years.

To calculate the total cost of the product if purchased through hire purchase, multiply the weekly payment by the number of weeks in 2 years. There are 52 weeks in a year, so 2 years is 52 * 2 = 104 weeks. Multiply J$790 by 104 weeks to find the total payment over 2 years: J$790 * 104 = J$82,160. Finally, add the upfront payment to the total payment over 2 years to find the total cost: J$745 + J$82,160 = J$82,905.