Answer to Question #281054 in Finance for Aarti

Question

A firm purchased a machine on hire purchase with a down-payment of 80,000

and agreed to pay the balance in three equal installments of 80,000 each.

The cash price of the machine is 2,90,000.

The hire purchase price of the machine is___?

Answer 1

Hire purchase = deposit + total of monthly payments.

$=80,000+3(80,000)$

$=320,000$