Question

The marked price of a sewing machine is sh 30,000. A discount of 10% is given on cash payment. The sewing machine can also be bought on hire purchase. The hire purchase terms requires a deposit of sh 10,500 followed by 12 equal monthly installments of sh 2,150 each.

1. Calculate:
   1. The cash price of the sewing machine. 
   2. The hire purchase value of the sewing machine. 
2. Korir bought the sewing machine by cash while Akinyi bought it on hire purchase. How much did Akinyi pay for the machine than Korir? 
3. Calculate the percentage increase in hire purchase price over the marked price.

Answer 1

1.  
   1. Discount = ¹⁰/₁₀₀ × 30000 = 3000
      Cash price = 30000 − 3000
                      =Sh27,000
   2. 2150 × 12 = 25800
      =Sh. 25800
      25800+10500
      =Sh. 36,300
2. 36300 − 27000
   =Sh. 9,300
3.  9300   × 100% = 31%
   30000