Question

A machine whose cash ptice us $700 was bought on hire purchase for $784. The cost of credit was​

Answer 1

$84

Step-by-step explanation:

Cost of Credit refers to the expenses incurred when using credit. It is the cost of borrowing and is represented by the difference between the total amount paid back and the amount borrowed.

I.e., cost of credit = Amount paid - Amount borrowed.

In this case,

Cost of credit = $784 - $700

Cost of credit = $84