Interest & hire purchase

Hire purchase
Hire purchase involves an initial deposit and a balance paid in monthly instalments, usually with added interest.
\(\text{Total cost}=\text{deposit}+(\text{instalment}\times\text{number of instalments})\).
For the model used here, interest is included in the instalments, not the deposit. With positive interest, the total exceeds the cash price.

Hire purchase involves an initial deposit and a balance paid in monthly instalments, usually with added interest.

\(\text{Total cost}=\text{deposit}+(\text{instalment}\times\text{number of instalments})\).

For the model used here, interest is included in the instalments, not the deposit. With positive interest, the total exceeds the cash price.

IP1U8 8.3.5 Conceptual Bridging (Hire Purchase)

IP1U8 8.3.5 Conceptual Bridging (Hire Purchase)

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