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Home > Maths I > Numbers and Money > Hire purchase

Maths I

Hire purchase

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Finding a deposit

Hire Purchase (H.P.) is a popular way of buying expensive goods. Using H.P. you usually pay a deposit first and the remainder by monthly instalments. Goods normally cost more on hire purchase.

A teenage boy holding a big telly.

Example

Tom wants to buy a TV through H.P. He has been asked to make a deposit of one fifth of the total price of £200.

How much will the deposit be?

Deposit = 1 \over 5 of £200

= 200 \over 5

= £40

Tom needs to make a deposit of £40.

 

Now find the deposit for each of the following.

Question

How much will a deposit of 15% of £300 be?

Answer

Deposit = 15% of 300.

= 15 x 1% of 300

= 15 x 3

= £45

The deposit will be £45.

Question

How much will a deposit of {1 \over 4 } of £300 be?

Answer

Deposit = {1 \over 4 } of 300

= 300 ÷ 4

= £75

The deposit will be £75.

Question

How much will a deposit of 20% of £500 be?

Answer

Deposit = 20% of 500

= 500 ÷ 5 (because 20% is the same as {1 \over 5 })

= £100

The deposit will be £100.

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