Subjects finance

Hire Purchase Price

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Hire Purchase Price


1. **State the problem:** Anderson bought a wardrobe on hire purchase terms. He paid a deposit of 6500 and 12 equal monthly instalments of 1900. We need to calculate the total hire purchase price of the wardrobe. 2. **Formula used:** The hire purchase price is the sum of the deposit and the total of all instalments. \[ \text{Hire Purchase Price} = \text{Deposit} + (\text{Number of Instalments} \times \text{Instalment Amount}) \] 3. **Substitute the values:** \[ \text{Hire Purchase Price} = 6500 + (12 \times 1900) \] 4. **Calculate the total instalments:** \[ 12 \times 1900 = 22800 \] 5. **Calculate the total hire purchase price:** \[ 6500 + 22800 = 29300 \] 6. **Answer:** The hire purchase price of the wardrobe is 29300.