Form 1 Mathematics
The hire purchase (H.P) price of a public address system was Kshs 276000. A deposit of Kshs 60000 was paid followed by 18 equal monthly installments.
The cash price of the public address system was 10% less than the H.P price.
(i) The monthly installments
(ii) The cash price
(b) A customer decided to buy the system in cash and was allowed a 5% discount on the cash price. He took a bank loan to buy the system in cash.
The bank charged compound interest on the loan at the rate of 20% p.a. The loan was repaid in 2 years.
Calculate the amount repaid to the bank by the end of the second year
(c) Express as a percentage of the Hire Purchase price, the difference between the amount repaid to the bank and the Hire Purchase price
Related Questions and Answers on Commercial Arithmetic I
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