Question

The retail price of a television set is $2500. If the buyer pays cash, the price is 10% below the retail price. If the set is bought on hire purchase, the buyer pays a downpayment of $500 and 18 monthly installments of $150.

A) Determine the difference between the hire purchase price and the cash price.
B) Calculate the difference as a percentage of the retail price.

Answer 1

cash price:

10% = 250

2500 - 250 = $2,250

hire purchase:

2500 + 500 + 150(18) = $5,700

a) 5,700 - 2,250 = $3,450