The cash price of a cupboard is sh 3000. An interest of 25% is charged if the cupboard is bought on hire purchase terms.

The cash price of a cupboard is sh 3000. An interest of 25% is charged if the cupboard is bought on hire purchase terms. Amina bought the cupboard on hire purchase terms. She paid a deposit and twelve equal installments. Each installment was sh 262.50. How much deposit did she pay?

A. sh 3 750
B. sh 750
C. sh 600
D. sh 150

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The correct answer is [C]

Cash price = 3000

- Hire purchase price = Deposit + Installments
- Installments = 12 x 262.50 = 3150
- D = Hire purchase price -3150
= 3750-3150 = 600

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Wilfykil answered the question on July 31, 2019 at 10:08

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