Hire Purchase Multiple Choice Questions and Answers PDF

MCQ 1: A refrigerator is priced at $10,000. A deposit of 16% on simple interest of 11% per year over 2 year and repayments paid monthly then the amount of deposit made is:

1. $2,000
2. $2,150
3. $1,950
4. $1,600

MCQ 2: The television is priced at $10,000. A deposit of 16% on simple interest of 11% per year over 2 year and repayments paid monthly then the monthly installment is:

1. $457
2. $447
3. $437
4. $427

MCQ 3: The television is priced at $10,000. A deposit of 16% on simple interest of 11% per year over 2 year and repayments paid monthly then the additional amount to pay in 24 monthly installments after deposit is:

1. $10,248
2. $11,248
3. $13,248
4. $14,248

MCQ 4: A refrigerator is priced at $10,000. A deposit of 16% on simple interest of 11% per year over 2 year and repayments paid monthly then the interest on remaining amount for 2 years after deposit is:

1. $2,148
2. $1,848
3. $1,948
4. $2,048

MCQ 5: Henry buys a designer furniture set at price of $1200. He pays 25% deposit and interest in 36 months plus outstanding balance. The interest charged on balance is 12%. The total hire purchase price is:

1. $1,824
2. $1,724
3. $1,624
4. $1,524