- A housewife purchased a video recorder with a
cash price of $2700 under hire purchase terms.
She paid an initial deposit of 20% of the cash
price and interest at 18% per annum on the out-
standing balance is charged. The amount pay-
able is paid in 12 equal monthly instalments.
Calculate for the videorecorder:

A) the hire purchase

B) the amount of each monthly installment

C) the difference between the hire purchase price and the cash price

D) the difference as a percentage of the cash price