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4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.?
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4. X purchased a computer on January 1, 2015 on hire-purchase price fr...
Hire-Purchase Transaction: X and Dilip Electronics
Introduction: This is a hire-purchase transaction where X purchased a computer from Dilip Electronics on January 1, 2015. The cash price of the computer was 30,000. However, X opted for hire-purchase, where the payment was to be made in instalments.
Terms of Purchase: The terms of purchase were as follows:
(a) X was to pay 12,000 at the time of purchase.
(b) The balance amount was to be paid in 12 quarterly instalments of 1,920 each, falling due from 1st April immediately.
Explanation:
Step 1: Calculation of the Total Amount Payable
The total amount payable by X is calculated as follows:
Total amount payable = Cash price + Interest
Cash price = 30,000
Interest = Total instalment amount – Cash price
Total instalment amount = 12 x 1,920 = 23,040
Interest = 23,040 – 30,000 = -6,960 (Negative because it is a hire-purchase transaction)
Therefore, the total amount payable by X is 30,000 – 6,960 = 23,040.
Step 2: Calculation of the Annual Percentage Rate (APR)
The APR is calculated as follows:
APR = (Interest / Cash price) x (365 / Total number of days)
Interest = -6,960
Cash price = 30,000
Total number of days = 365
APR = (-6,960 / 30,000) x (365 / 365) = -0.232 x 100 = -23.2%
The negative sign indicates that X is paying less than the cash price due to the hire-purchase transaction.
Conclusion: X purchased a computer on hire-purchase from Dilip Electronics. The cash price was 30,000, and X paid 12,000 at the time of purchase. The balance amount was to be paid in 12 quarterly instalments of 1,920 each, falling due from 1st April immediately. The total amount payable by X was 23,040, and the APR was -23.2%.
Introduction: This is a hire-purchase transaction where X purchased a computer from Dilip Electronics on January 1, 2015. The cash price of the computer was 30,000. However, X opted for hire-purchase, where the payment was to be made in instalments.
Terms of Purchase: The terms of purchase were as follows:
(a) X was to pay 12,000 at the time of purchase.
(b) The balance amount was to be paid in 12 quarterly instalments of 1,920 each, falling due from 1st April immediately.
Explanation:
Step 1: Calculation of the Total Amount Payable
The total amount payable by X is calculated as follows:
Total amount payable = Cash price + Interest
Cash price = 30,000
Interest = Total instalment amount – Cash price
Total instalment amount = 12 x 1,920 = 23,040
Interest = 23,040 – 30,000 = -6,960 (Negative because it is a hire-purchase transaction)
Therefore, the total amount payable by X is 30,000 – 6,960 = 23,040.
Step 2: Calculation of the Annual Percentage Rate (APR)
The APR is calculated as follows:
APR = (Interest / Cash price) x (365 / Total number of days)
Interest = -6,960
Cash price = 30,000
Total number of days = 365
APR = (-6,960 / 30,000) x (365 / 365) = -0.232 x 100 = -23.2%
The negative sign indicates that X is paying less than the cash price due to the hire-purchase transaction.
Conclusion: X purchased a computer on hire-purchase from Dilip Electronics. The cash price was 30,000, and X paid 12,000 at the time of purchase. The balance amount was to be paid in 12 quarterly instalments of 1,920 each, falling due from 1st April immediately. The total amount payable by X was 23,040, and the APR was -23.2%.
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4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.?
Question Description
4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about 4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.?.
4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about 4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.?.
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4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.?, a detailed solution for 4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.? has been provided alongside types of 4. X purchased a computer on January 1, 2015 on hire-purchase price from Dilip Electronics. The cash price was 30,000. The terms of purchase were as under : (a) * 12,000 is payable (b) Balance being payable by 12 quarterly instalments of 1,920, falling due from 1st April, immediately. 2015.? theory, EduRev gives you an
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