Interest & hire purchase

<p>Hire purchase involves buying an item by paying an initial deposit and the balance in monthly installments, usually with added interest.</p>
<ul class="bullet-list"><li data-list-item-id="item-1" data-list-item-path="item-1"><div class="list-item-paragraph"><strong>Key Formula:</strong></div></li></ul>
<p style="text-align: center">\(\text{Total Cost} = \text{Down Payment} + (\text{Periodical Instalment} \times \text{Number of Periods})\)</p>
<ul class="bullet-list"><li data-list-item-id="item-2" data-list-item-path="item-2"><div class="list-item-paragraph"><strong>Key Points:</strong></div><div class="list-item-paragraph">\(\circ\ \) Interest is included in the instalments.</div><div class="list-item-paragraph">\(\circ\ \) Compare the total instalments and deposit with the cash price; hire purchase costs more when the stated interest and fees make its total higher.</div></li></ul>

Hire purchase involves buying an item by paying an initial deposit and the balance in monthly installments, usually with added interest.

\(\text{Total Cost} = \text{Down Payment} + (\text{Periodical Instalment} \times \text{Number of Periods})\)

\(\circ\ \) Interest is included in the instalments.

\(\circ\ \) Compare the total instalments and deposit with the cash price; hire purchase costs more when the stated interest and fees make its total higher.

Hire Purchase

Hire Purchase

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