Question

the cash price for a drill is $240, when bought on hire purchase an interest of 20% of the cash price is added. find the hire purchase price

Answer 1

Let's determine the 20% of the cash price. That is

I = $240 * (20%/100%) = $240 * 0.2 = $48.

So, the hire purchase price is

H = $240 + $48 = $288.