Algebra.Com's Answer #848590 by ikleyn(52776)![\"\"](\"/images/stars/stars-13.gif\")  
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document.write( "John wants to buy a car on hire purchase for N$75,000.00 at the rate of 10% p.a. repayable using
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document.write( "monthly installments for a period of 2 years and 8 months. (No deposit was required).
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document.write( "Use the given information to calculate the total amount of money expected to be paid
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document.write( "to the Hire Purchase Company over the years.
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document.write( " I do not think that this problem is for simple interest.\r
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document.write( " As this problem is worded, it is a typical loan problem and should be solved as a loan problem\r
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document.write( " by different way comparing with the post by the other tutor.\r
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document.write( "Use the standard formula for the monthly payment for a loan\r\n" );
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document.write( " M =  \r\n" );
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document.write( "where P is the loan amount; r =  is the effective interest rate per month;\r\n" );
document.write( "n is the number of payments (same as the number of months); M is the monthly payment.\r\n" );
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document.write( "In this problem P = $75000; r = ; n = 2*12+8 = 32 is the number of monthly payments.\r\n" );
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document.write( "Substitute these values into the formula and get the monthly payment\r\n" );
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document.write( " M =  = $2679.82 (rounded).\r\n" );
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document.write( "Thus, the monthly payment is $2679.82 (the monthly installment)\r\n" );
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document.write( "The total amount of money expected to be paid is 32 times this monthly installment\r\n" );
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document.write( " 32 * 2679.82 = 85,754.24 dollars.\r\n" );
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document.write( "The difference $85,754.24 - $75,000 = $10754.24 is the interest John pays to the Hire Purchase Company.\r\n" );
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document.write( "ANSWER. The total amount of money expected to be paid to the Hire Purchase Company is 85,754.24 dollars.\r\n" );
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document.write( "Solved.\r
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