Respuesta :
We are given the following information:
Henry buys a furniture for $1,200
He pays a deposit of 25%
Duration = 36 months = 3 years
Interest charged on balance = 12%
We will proceed to solve the total hire purchase price as shown below:
[tex]\begin{gathered} Deposit=25\text{\%}\times1,200 \\ Deposit=\text{ \$}300 \\ CashPrice(P)=(Price-Deposit)=(1,200-300)=900 \\ CashPrice(P)=\text{ \$}900 \\ \\ TotalInterest=\frac{P\times R\times T}{100} \\ TotalInterest=\frac{900\times12\times3}{100} \\ TotalInterest=900\times0.12\times3 \\ TotalInterest=\text{ \$}324 \\ \\ TotalHirePurchase=Deposit+CashPrice+TotalInterest \\ TotalHirePurchase=(300+900+324) \\ TotalHirePurchase=\text{ \$}1524 \\ \\ \therefore TotalHirePurchase=\text{ \$}1,524 \end{gathered}[/tex]Therefore, the total hire purchase is $1,524
