Form 1 Mathematics
A certain sum of money is deposited in a bank that pays simple interest at a certain rate.
After 5 years the total amount of money in an account is Kshs 358 400. The interest earned each year is 12 800
(i) the amount of money which was deposited
(ii) the annual rate of interest that the bank paid
(b) A computer whose marked price is Kshs 40,000 is sold at Kshs 56,000 on hire purchase terms.
(i) Kioko bought the computer on hire purchase term. He paid a deposit of 25% of the hire purchase price and cleared the balance by equal monthly installments of Kshs 2625
Calculate the number of installments
(ii) Had Kioko bought the computer on cash terms he would have been allowed a discount of 12 ½ % on marked price. Calculate the difference between the cash price and the hire purchase price and express as a percentage of the cash price.
Related Questions and Answers on Commercial Arithmetic I
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