What is the formula for hire purchase?

Answer 1

Hire purchase is calculated using the simple interest formula, and interest is only calculated on the amount owing.

A = S ( 1 + i.n)

Where:

A = Total amount after interest

S = Starting amount after deposit has been subtracted (no interest)

i = Interest rate (divide the % by 100, and then again by 12, 4, or 6 depending on the number of times interest will be calculated)

n = number of time periods that the purchase agreement states to pay over (24 months, etc)

Substituting the given values into the formula will give you the total amount to be paid after interest has been accrued.

To calculate the repayments, you divide the answer derived as A (total amount) by the number of repayments (n) you have to make.

It is a really simple process, and it will only ever use the simple interest formula.

Hope this was helpful ^^

Answer 2

R=100/

Answer 3

Waaaaaaaa y is math so hard!!!