Get premium membership and access revision papers with marking schemes, video lessons and live classes.
The hire purchase (H.P.) price of a public address system was ksh276000.A deposit of ksh 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.
(a)Calculate (i) the monthly installment
(ii)the cash price
(b)A customer decided to buy the system in cash and 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 .