<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><div class="list-item-content"><span class="list-item-text"><strong>Key Formula:</strong></span></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><div class="list-item-content"><span class="list-item-text"><strong>Key Points:</strong></span></div><ul class="bullet-list"><li><div class="list-item-paragraph">Interest is included in the instalments.</div></li><li><div class="list-item-content"><span class="list-item-text">More expensive in total than paying the full price upfront.</span></div></li></ul></li></ul>

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

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

More expensive in total than paying the full price upfront.

Standard Form and Compound Interest

Question 1b65c10c