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Maths Question on Hire Purchase.


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#1 Slash31

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Posted 31 March 2008 - 02:09 PM

!) Mandy bought a set of fitness equipment by paying zero downpayment and monthly instalments of $265 over 18 months.If the flat rate of interest was 4% p.a., find the cash price of the set.

The answer is $4500. (Can show me the working for this question)

2) The cash price of an air-conditioner was $1800.Vernon bought it by paying monthly instalments of $129 with zero downpayment.If the flat rate of interest is 6% p.a. ,find the number of instalments he has to make before gaining ownership of the air-conditioner.

The answer is 15. (Can show me the working for this question)


Thanks a lot.I think these questions might be easy for some of u.

#2 katrie

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Posted 31 March 2008 - 09:36 PM

I'm guessing this is compound interest? Did your teacher say compounded how many times a year?

I think this page could help you: http://en.wikipedia....nance_theory%29

Edited by katrie, 31 March 2008 - 09:56 PM.


#3 mich_jack25

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Posted 01 April 2008 - 03:20 AM

1)

X= Cash Price

X + (0.04 * (18/12) * X) = 265 * 18

(X * 1) + (0.04 * (18/12) * X) = 265* 18

X ( 1 + (0.04 * 1.5)) = 265 * 18

X ( 1 + 0.06 ) = 4770

X = 4770 / 1.06

= 4500 ==> Therefore, the case price will be $ 4500


2)
Y = No of Installments

1800 + (0.06 * 1800) = 129 * Y

1800 (1 + 0.06) = 129 * Y

Y = (1800 * 1.06) / 129

= 14.79

Therefore, Vernon needs to have 15 times of installments to gain ownership of air-conditioner.

#4 Dao Fu

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Posted 01 April 2008 - 10:28 AM

LoL what the... are we using series?

#5 katrie

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Posted 01 April 2008 - 09:37 PM

Oh... I didn't see that it said FLAT interest? Like on the original principal amount only? That never ever happens! ^_^

#6 NiceDay_88

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Posted 03 April 2008 - 02:15 AM



waaah Annuity (finance theory)?? looool.. using complex numbers to proof waaah Annuity =X
lol let it be simple ^__^








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