The objectives of this section are to
understand the difference between cash price and hire purchase
be able to calculate percentage increase and decrease in price
be able to calculate GCT in context.
You are familiar with buying items in shops and markets but often, when buying expensive goods, different methods of payment are available.
You might be offered a hire purchase agreement: you would pay a deposit and then pay the remainder of the cost of the item in a specified number of (often monthly) instalments. In a sale, the cash price might be reduced.
You need to remember that most goods are subject to a government sales tax, often referred to as VAT (value added tax). In Jamaica this government tax is GCT (general consumption tax) which is currently charged at 16
1
2
%.