When an item is bought by paying a deposit and other regular payments called instalments the item is said to be bought on hire purchase.
Cash price = Sh 9 000
Deposit = Sh 5 000
Total of instalment = Sh (700 X 10) = Sh 7 000
Hire purchase price = deposit + total of amount instalments
= Sh 5 000 + Sh 7 000 = Sh 12 000
Difference = Sh 12 000 – Sh 9 000 = Sh 3 000
1. The cash price of a machine is 20 % less than the hire purchase price. The hire purchase terms required a deposit of sh 2600 and eight equal monthly instalments of sh 800. What is the cash price of the machine?
A. Sh 9000 B. Sh 7500 C. Sh 2720 D. Sh 10800
2. The marked price of a bicycle was sh 7500. The hire purchase price was 120 % of the marked price. Mnimi bought the bicycle in hire purchase terms. He paid a deposit of sh 3000 and the balance in monthly instalments of sh 750 each. In how many months did he pay the balance?
A. 6 B. 12 C. 8 D. 10
3. The cash price of a radio is sh 1000. The hire purchase terms for the same are: a deposit of sh 250 followed by six equal monthly instalments of sh 180. How much more does one pay for the radio on hire purchase terms?
A. Sh 80 B. Sh 330 C. Sh 570 D. Sh 1080
4. The marked price of a motorcycle is sh 45000. Omondi decided to buy it by hire purchase terms. He paid a deposit of sh 24000 and 10 equal monthly instalments. The total amount he paid at the end was sh 7000 more than the marked price. How much did he pay per month?
A. Sh 1400 B. Sh 2100 C. Sh 2800 D. Sh 5200
5. Maiyo bought a radio on hire purchase terms. He paid a deposit of sh 500 and 22 equal monthly instalments of sh 250. If the cash price of this radio was three quarters of the hire purchase price, what was the cash price?
A. Sh 8000 B. Sh 6000 C. Sh 4125 D. Sh 4500
6. Kirui bought a record player on hire purchase. He paid a deposit of sh 1300 and 8 equal instalments of sh 250. The total amount paid was 10 % more than the cash price. What was the cash price of the record player?
A. Sh 3630 B. Sh 2970 C. Sh 3000 D. Sh 3300
7. The marked price of a sewing machine is sh 15000. A 5 % discount is allowed if the machine is bought for cash. On hire purchase, a deposit of sh 6000 plus three equal monthly instalments of sh 3200 is required. Amina and Hija bought sewing machines from a shop. Amina paid cash while Hija bought by hire purchase terms. How much more than Amina did Hija pay for her machine?
A. Sh 1350 B. Sh 600 C. Sh 1050 D. Sh 750
8. The cash price of a radio is sh 8000. Muinde bought it on hire purchase terms. The total amount he paid was 25 % more than the cash price. He paid a deposit of sh 1000 and the remainder in 20 equal monthly instalments. How much did he pay per instalment?
A. Sh 250 B. Sh 350 C. Sh 450 D. Sh 500
9. The marked price of a bicycle is sh 6245. Muli bought the bicycle in cash terms and was given a 10 % discount. Watuma bought the same type of bicycle in hire purchase terms whereby he paid a deposit of sh 2000 and 12 equal monthly instalments of sh 500. How much more than Muli did Watuma pay for his bicycle?
A. Sh 2379.50 B. Sh 1755.00 C. Sh 624.50 D. Sh 379.50
10. Chebet and Rono bought similar radio cassettes from the same shop. Chebet bought hers for cash. Rono bought his on hire purchase terms by paying a deposit of sh 4000 plus 6 equal monthly instalments of sh 3000 each. If Rono paid sh 5000 more than Chebet, how much did Chebet pay for her radio cassette?
A. Sh 17000 B. Sh 18000 C. Sh 22000 D. Sh 27000
11. The hire purchase price of a sewing machine was 120 % of the cash price. Omolo bought the sewing machine on hire purchase terms by paying a deposit of sh 1200 plus 12 monthly instalments of sh 750 each. What was the cash price of the sewing machine?
A. Sh 7500 B. Sh 8160 C. Sh 10200 D. Sh 8500
12. The marked price of TV set is sh 24000 but a 10 % discount is allowed on paying cash. The hire purchase terms for the same set are: a deposit of sh 5000 followed by 11 equal monthly instalments of sh 1800 each. How much more does one pay for the TV set on hire purchase terms than by paying cash?
A. Sh 800 B. Sh 3200 C. Sh 21600 D. Sh 24800
13. The hire purchase price for a TV set is made up of sh 4000 deposit and 18 monthly instalments of sh 1200 each. Musembi was given a discount of 20 % on hire purchase price for paying cash for a TV set. How much did he pay?
A. Sh 25600 B. Sh 20480 C. Sh 17280 D. Sh 5120
14. The marked price of a sofa set is sh 18000. Juma bought the set on hire purchase terms. The hire purchase price was 20 % more than the marked price. He had a deposit of sh 6000 and 8 equal monthly instalments. What was each monthly instalment?
A. Sh 1950 B. Sh 1800 C. Sh 1500 D. Sh 1050
15. The cash price for a bicycle was sh 7000. Kyalo bought it on hire purchase terms. The amount paid was 25 % more than the cash price. He paid a deposit plus 12 equal monthly instalments of sh 600 each. How much deposit did he pay?
A. Sh 1550 B. Sh 1750 C. Sh 7200 D. Sh 8750
