A good is worth K2500cash.It can also purchase by K200 deposite and monthly installment of K103.50 for 2years in hire-purchase.What is the interest charged on hire-purchase ? ?

To calculate the interest charged on hire-purchase, we first need to calculate the total amount paid over the 2-year period.

The total amount paid in monthly installments over 2 years is:
Monthly installment = K103.50
Number of months in 2 years = 2 years * 12 months/year = 24 months
Total amount paid in installments = K103.50 * 24 months = K2484

In addition to the monthly installments, a K200 deposit was made at the beginning. Therefore, the total amount paid over 2 years is:
Total amount paid = K2484 + K200 = K2684

The original price of the good is K2500, so the interest charged on hire-purchase is:
Interest charged = Total amount paid - Original price
Interest charged = K2684 - K2500 = K184

Therefore, the interest charged on hire-purchase is K184.

Step 1: Calculate the total hire-purchase cost

Deposit: K200
Monthly installments: K103.50 x 24 months = K2,484
Total hire-purchase cost: K200 + K2,484 = K2,684

Step 2: Calculate the interest charged

Interest charged = Total hire-purchase cost - Cash price
Interest charged = K2,684 - K2,500
Interest charged = K184

Therefore, the interest charged on the hire-purchase is K184.