The cash price of a camera is Sh.42,200. Joseph bought the camera on hire purchase (H.P) term by paying a deposit of Sh.7,200 and cleared...

The cash price of a camera is Sh.42,200. Joseph bought the camera on hire purchase (H.P) term by paying a deposit of Sh.7,200 and cleared the balance in 24 equal monthly installments each of Sh.2,250
(a) Find the amount of interest paid under hire purchase plan

(b) Ken took a loan from a financial institution and bought the camera with cash. He repaid the loan in two years at 18% interest compound semi-annualy. Find the total interest paid by Ken

(c) The cash price is taken as the value of the Camera. If the camera depreciated at a rate of 15% in the first year after buying and at P% p.a for rest of the time, calculate the value of p if the value of the camera after 5 years was Sh.23,534

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maurice.mutuku answered the question on November 8, 2019 at 07:52

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