Form 1 Mathematics
The cash price of a laptop was Ksh 60 000. On hire purchase terms, a deposit of Ksh 7 500 was paid followed by 11 monthly installments of Ksh 6 000 each.
(i) the cost of a laptop on hire purchase terms;
(ii) the percentage increase of hire purchase price compared to the cash price.
(b) An institution was offered a 5% discount when purchasing 25 such laptops on cash terms. Calculate the amount of money paid by the institution.
(c) Two other institutions, X and Y, bought 25 such laptops each. Institutions X bought the laptops on hire purchase terms. Institution Y bought the laptops on cash terms with no discount by securing a loan from a bank. The bank charged 12% p.a. compound interest for two years.
Calculate how much more money institution Y paid than institution X.
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