The marked price of a car is $49500. A person pays a deposit of 30% and interest at 12% per annum is charged on the outstanding balance. The total amount payable is to be paid in 2 1/2 years

Question

Calculate the amount paid each month and the hire purchase

Answer 1

P = Po*r*t/(1-(1+r)^-t).

Po = 07 * 49,500 = $34,650 Financed.

r = 0.12/12 = 0.01/mo.

t = 2.5yrs * 12mo/yr. = 30 mo.

P = (34,650*0.01*30)/(1-(1.01)^-30) = 10,395/0.25807708 = $40,278.66 = Total amt. paid.

40,278.66/30mo. = $1342.62 /mo.



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Answer 2

$2133.33