Cash price is K4200, initial deposit is K700,interest is 10% in a hire purchase. Calculate hire purchase price?

To calculate the hire purchase price, we need to add the initial deposit to the cash price and then add the interest on the remaining balance.

Initial deposit: K700
Cash price: K4200
Interest rate: 10%

1. Calculate the remaining balance after the initial deposit:
K4200 - K700 = K3500

2. Calculate the interest on the remaining balance:
10% of K3500 = K350

3. Add the interest to the remaining balance:
K3500 + K350 = K3850

4. Add the initial deposit to the total amount:
K3850 + K700 = K4550

Therefore, the hire purchase price is K4550.

Step 1: Calculate the total interest

Interest = Cash price x Interest rate x Loan period
Interest = K4200 x 0.10 x N (where N is the loan period in years)

Step 2: Calculate the total hire purchase price

Hire purchase price = Cash price + Interest
Hire purchase price = K4200 + (K4200 x 0.10 x N)

Step 3: Solve for N (loan period)

We are not given the loan period, so we cannot calculate the exact hire purchase price. However, we can simplify the expression:

Hire purchase price = K4200 + (K420 x N)

Example:

If the loan period is 2 years (N = 2), then the hire purchase price would be:

Hire purchase price = K4200 + (K420 x 2)
Hire purchase price = K4200 + K840
Hire purchase price = K5040

Note: The total hire purchase price will vary depending on the loan period.