Consumer Math & Graphs
Trinity Term Project
One of the first things every high school graduate thinks about is their first car.
Most often, they have to resort to credits and payment plans, due to limited funds.
For Joshua, he decided to accept a HIRE PURCHASE OFFER on the following terms:
Deposit ¼ of the cash price
Pay $398 monthly for 5 years
iii) Give ONE(1) important condition Joshua must note in regards to OWNERSHIP and hire purchase agreements. 
i) Calculate the hire purchase price. [2.5] ii) Calculate the % hire purchase charged. [1.5]
1 – Hire Purchase Agreement
Another option is to loan the money from a bank or finance company and pay COMPOUND INTEREST. 
|Amount repaid after 3 years|
|Compound Interest Charged|
2 – Interest Payments
IMPORTANT: Most banks, like Banco Popular, will only finance (loan) 90% of the cost of the car, so
Joshua will have to come up with the rest money on his own.
Complete the table below to show: the loan amount (principal); the amount paid back and the compound interest charged given that the compound interest rate is 11.95 % p.a. for a period of 3 years.
Thursday 10th June 2021