The following example shows you how to calculate instalments
The cash price of a bike is £220. The hire purchase price is £300. If the deposit is 10% followed by 10 equal monthly instalments, find the amount you pay each month.
First calculate the deposit:
Deposit = 10% of £220
Now we need to calculate the total instalments:
Total instalments = H.P price - deposit
= £300 - 22
Now we can work out what each instalment will be
Individual instalments = total instalments ÷ number of instalments
= 278 ÷ 10
Make a note of the way in which these have been worked out.
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