Question

2. Nemani buys a TV on hire purchase. The cash price is $1250. He pays $450 deposit and 12 monthly instalments of $95.How much interest is paid by Nemani.​

Answer 1

Nemani has paid $1250 for a TV on hire purchase. The cash price was $1250, so the total cost to Nemani was $1300. Nemani has paid $450 deposit and 12 monthly instalments of $95, for a total of $1445.

So, Nemani has paid an interest rate of 10% on his total payment.