29/05/2021
Hire purchase - an agreement that if a customer can't afford an item they can buy it on credit but firstly they had to pay deposit and the rest of the balance be paid on installments which will include interest.
A deposit is usually given as a percentage, the percent counted on the cash price after that. The deposit must be subtracted from the Cash price (selling price).
After deposit has been subtracted the balance will have to be calculated Simple interest upon it.
Then the total amount paid will be = deposit + balance + interest