Question

1. The cash price of a DVD player is $340.It can be bought on hire purchase for a deposit of $15 plus 18 monthly payments of $20.

A) Calculate the hire purchase price o the DVD payer.
B) Evaluate the difference between the Cash price and the hire purchase price of the DVD player.

Answer 1

The hire purchase price of the DVD player is $375, which is calculated as an initial deposit of $15 plus 18 monthly payments of $20. The difference between the cash price ($340) and the hire purchase price ($375) is $35.

Step-by-step explanation:

To answer the question, we need to calculate the hire purchase price of the DVD player and then the difference between the cash price and the hire purchase price.

A) Calculate the hire purchase price of the DVD player:

Deposit: $15

18 monthly payments of $20 each:

18 payments * $20/payment = $360

Add the deposit to the total monthly payments:

$15 + $360 = $375

The hire purchase price of the DVD player is therefore $375.

B) Evaluate the difference between the Cash price and the hire purchase price of the DVD player:

Cash price of the DVD player: $340

Hire purchase price of the DVD player: $375

The difference:

$375 - $340 = $35

The difference between the cash price and the hire purchase price of the DVD player is $35, which means the DVD player costs $35 more when bought on hire purchase.