Subjects algebra

Hire Purchase

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1. **State the problem:** We are given a stove with a cash price of 1500. It can be bought on hire purchase with a deposit of 10% of the cash price and 12 monthly payments of 125 each. We need to find: (a) total amount of monthly payments (b) amount of deposit (c) total cost using hire purchase (d) money saved by paying cash 2. **Calculate total monthly payments:** The monthly payment is 125 and there are 12 payments. Total monthly payments = $12 \times 125 = 1500$ 3. **Calculate deposit amount:** Deposit is 10% of cash price. Deposit = $0.10 \times 1500 = 150$ 4. **Calculate total cost using hire purchase:** Total cost = deposit + total monthly payments = $150 + 1500 = 1650$ 5. **Calculate money saved by paying cash:** Money saved = hire purchase total cost - cash price = $1650 - 1500 = 150$ **Final answers:** (a) 1500 (b) 150 (c) 1650 (d) 150