The Hire Purchase (H.P.) price of a public address system was Ksh 276 000. A deposit of Ksh 60 000 was paid followed by 18 equal monthly instalments. The cash price of the public address system was 10

Fresh day Oliverkoome@gmail254.Com., let's solve. 17. The Hire Purchase (H.P.) price of a public address system was Ksh 276 000. A deposit of Ksh 60 000 was paid followed by 18 equal monthly instalments. The cash price of the public address system was 10% less than the H.P. price. a) Calculate: i) the monthly instalment; Step 1: Calculate the total amount to be paid through instalments. Amount to be paid in instalments = H.P. price - Deposit Amount to be paid in instalments = 276000 Ksh - 60000 Ksh Amount to be paid in instalments = 216000 Ksh Step 2: Calculate the monthly instalment. Monthly instalment = Amount to be paid in instalmentsNumber of instalments Monthly instalment = 216000 Ksh18 Monthly instalment = 12000 Ksh The monthly instalment is: 12000 Ksh ii) the cash price. Step 1: Calculate the cash price, which is 10% less than the H.P. price. Cash price = H.P. price - (10\% of H.P. price) Cash price = 276000 Ksh - ((10)/(100) × 276000 Ksh) Cash price = 276000 Ksh - 27600 Ksh Cash price = 248400 Ksh The cash price is: 248400 Ksh b) A customer decided to buy the system in cash and was allowed a 5% discount on the cash price. He took a bank loan to buy the system in cash. The bank charged compound interest on the loan at the rate of 20% p.a. The loan was repaid in 2 years. Calculate the amount repaid to the bank by the end of the second year. Step 1: Calculate the discounted cash price (the principal amount of the loan). Discounted Cash Price = Cash Price - (5\% of Cash Price) Discounted Cash Price = 248400 Ksh - ((5)/(100) × 248400 Ksh) Discounted Cash Price = 248400 Ksh - 12420 Ksh Discounted Cash Price = 235980 Ksh Step 2: Calculate the amount repaid using the compound interest formula A = P(1 + (R)/(100))^n. Here, P = 235980 Ksh, R = 20\%, and n = 2 years. A = 235980 (1 + (20)/(100))^2 A = 235980 (1 + 0.20)^2 A = 235980 (1.20)^2 A = 235980 × 1.44 A = 339811.20 Ksh The amount repaid to the bank by the end of the second year is: 339811.20 Ksh c) Express as a percentage of the Hire Purchase price, the difference between the amount repaid to the bank and the Hire Purchase price. Step 1: Calculate the difference between the amount repaid to the bank and the Hire Purchase price. Difference = Amount repaid to bank - H.P. price Difference = 339811.20 Ksh - 276000 Ksh Difference = 63811.20 Ksh Step 2: Express this difference as a percentage of the Hire Purchase price. Percentage = DifferenceH.P. price × 100\% Percentage = 63811.20 Ksh276000 Ksh × 100\% Percentage = 0.2312 × 100\% Percentage = 23.12\% The percentage is: 23.12\% What's next?