The marked price of a car is $49500. A person pays a deposit of 30% and interest at 12% per annum is charged on the outstanding balance. The total amount payable is to be paid in 2 1/2 years
Calculate the amount paid each month and the hire purchase
Well, buying a car can be quite a financial circus, but let's break it down step by step, shall we?
First, let's calculate the deposit. The person paid 30% of the marked price, which is $49500. So the deposit would be 30/100 * 49500 = $14850.
Now, let's find out the outstanding balance. The outstanding balance would be the marked price minus the deposit, which gives us $49500 - $14850 = $34650.
Next, let's figure out the interest charged per year. The interest rate is 12% per annum. So the interest charged per year would be 12/100 * $34650 = $4158.
Since the total amount payable is to be paid in 2 1/2 years, let's calculate the number of months. 2 1/2 years is 2 * 12 + 6 = 30 months.
To find the amount paid each month, we divide the outstanding balance plus the interest charged over the period of 30 months. So the amount paid each month would be ($34650 + $4158) / 30 = $1293.60.
Finally, the hire purchase would be the deposit plus the total amount paid over the 30 months. Therefore, the hire purchase amount would be $14850 + ($1293.60 * 30) = $50158.
So there you have it! Each month, the person would pay $1293.60, and the total hire purchase amount would be $50158. Enjoy the ride, and remember to buckle up for the financial adventure!
To calculate the amount paid each month and the hire purchase, we first need to determine the outstanding balance after the deposit and the interest charged.
1. Calculate the deposit amount:
Deposit = 30% of $49500
Deposit = 0.30 * $49500
Deposit = $14850
2. Calculate the outstanding balance:
Outstanding Balance = Marked Price - Deposit
Outstanding Balance = $49500 - $14850
Outstanding Balance = $34650
3. Calculate the interest charged:
Interest = ((Outstanding Balance * Interest Rate * Time) / 100)
Interest = ((34650 * 12 * 2.5) / 100)
Interest = $10395
4. Calculate the total amount payable:
Total Amount Payable = Outstanding Balance + Interest
Total Amount Payable = $34650 + $10395
Total Amount Payable = $45045
5. Calculate the monthly payment:
Monthly Payment = Total Amount Payable / (Number of Months)
Number of Months = 2.5 years * 12 months/year
Number of Months = 30 months
Monthly Payment = $45045 / 30
Monthly Payment = $1501.50
Therefore, the amount paid each month is $1501.50, and the hire purchase price is $45045.
$2133.33
P = Po*r*t/(1-(1+r)^-t).
Po = 07 * 49,500 = $34,650 Financed.
r = 0.12/12 = 0.01/mo.
t = 2.5yrs * 12mo/yr. = 30 mo.
P = (34,650*0.01*30)/(1-(1.01)^-30) = 10,395/0.25807708 = $40,278.66 = Total amt. paid.
40,278.66/30mo. = $1342.62 /mo.
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