Question

A television can be bought on hire purchase with a down payment of $800 and 20 monthly installment of $275.What is the hire purchase price

Answer 1

When you buy something on hire purchase the final price is given by:

`\text{ the down payment}+\text{monthly installment}\cdot n`

Where n is the number of installments. Using the data provided we have that the final purchase price is given by:

`\begin{gathered} P=800+20\cdot275=800+5500 \\ P=6300 \end{gathered}`

So the hire purchase price is $6300.