Instalments (Hire Purchase)

Front

A _______________ comes with a down payment and monthly installments. It is commonly used for purchasing expensive items like a house or a car.

Back

Instalment plan

or

Hire Purchase plan

Front

If a hire purchase plan is not used, then the person must pay for the item fully at ______________.

Back

the time of purchase

Front

A _______ (down payment) is usually required at the time of purchase.

Back

deposit

Front

The remaining amount owed to the seller is paid by _________ .

Back

instalments

Front

Instalments are __________ paid regularly overtime (examples: weekly, fortnightly or monthly).

Back

fixed amounts

Front

The formula to find hire purchase price

Back

Hire purchase price

= deposit + installments

Front

Buying an item by instalment plan is usually ______ expensive than the original selling price.

Back

more

Front

The next 3 slides are based on the same advertisement.

Deposit =10% of $1500

Back

$150

Front

Total instalment payments = 12 x $115

Back

$1380

Front

Price by instalment plan = deposit + total instalments

= $150 + $1380

Back

$1530

more expensive than cash price $1500