Loans & Hire Purchase

Today in maths we did Hire purchase and Loans.

Example 1

Loans

£1200 Loan

6 Repayments = £215

Total Repayments =

How much more does the loan cost than the paying cash?

We worked this out by finding the total repayments, and you do this by multiplying 6 by £215.

So the total amount of repayments needed is £ 1290

The loan costs £90 more than paying in cash.

Hire Purchase

With hire purchase sometimes a deposit needs to be made.

This payment must be paid before the goods can be taken home,

Often this deposit is a percentage of the cash price .

Example 2

Hire purchase

Three piece suite

Cash price £1200

Or 10% deposit and 12 monthly instalments of £99.99

= 10% of £1200 = £120

12 x £99.99 = £1199.88

£1199.88 + £120 = £1319.88

For the next post i choose Linzi


13 Responses to “Loans & Hire Purchase”

  1. 1 Mr Jones

    Good clear post Katie - I wasn’t in class today but now I know what you learned about! It would be great if we could find a Web site about loans or hire purchase.

  2. 2 Earl

    This is a really nice post. I am telling you this from Canada.

  3. 3 michael a.

    Hey good job Katie. I finally know what all those deposits and loans that they say on tv all mean. Maybe Mr. Harbeck will teach US all this sometime soon? Haha.

  4. 4 Nick

    Pretty good post that you have there. I like how you explain every thing in the post

  5. 5 oranges

    hey good job on ur scribe i like how u showed examples and explained how to get it=)
    and can people in school put pics on ur scribes ???

    ooo and just in-case ur wondering who i am, im from canada
    at the 8-41 math blog

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