[coolfield7]

Hi, I'm having trouble with some math and would really appreciate some help. I'm on a chapter where I'm learning about interest. Here's the problem:

For each of the following (i) find the additional amount you have to pay by hire purchase and (ii) express the additional amount obtained in (i) as a percentage of the cash price.
(a) Cash price- $360
Down payment- $50
Monthly installment- $40
Number of installments- 10

This is really confusing for me, I have no idea what to do. I'd be really grateful for any help.

Thanks!

[ebaines]

I've not heard the term "hire purchase" before - I assume what they mean is "find teh additional amount you have to pay over time." First calculate the total amount of cash outlay if you buy the product with payments. which requires a down payment of $50 plus 10 payments of $40 each. Then compare that to the amount if you pay up front with cash, which is $360. They're asking for that comparison both in terns of dollars and as a percentage over the cash price. Post back with your answers and we'll check them for you.