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Financial Maths, SMB-027

The cash price of a large refrigerator is $2000.

A customer buys the refrigerator under a hire-purchase agreement.

She does not pay a deposit and will pay $55 per month for four years.

  1. Calculate the total amount, in dollars, the customer will pay.  (1 mark)

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  2. Find the total interest the customer will pay over four years.  (1 mark)

    --- 1 WORK AREA LINES (style=lined) ---

Show Answers Only
  1. `$2640`
  2. `$640`
Show Worked Solution

i.    `text{Total amount paid} = 55 xx 4 xx 12 = $2640`

ii.   `text{Total interest} = 2640-2000= $640`

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

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