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Financial Maths, SMB-023

Sandra has purchased a $4200 plasma television under a hire-purchase agreement. She paid $600 deposit and will pay the balance in equal monthly instalments of $318 over one year.

Determine the total amount of interest Sandra pays on this purchase.   (3 marks)

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`$216`

Show Worked Solution

`text(Deposit = $600)`

`text(Total monthly instalments) = 12 xx 318 = $3816`

`text{Total payment} = 600 + 3816 = $4416`

`text{Interest paid} = 4416-4200 = $216`

Filed Under: Earning and Spending Money Tagged With: num-title-ct-corea, smc-4331-60-Hire purchase

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