Episode 6 — Financial Maths

Hire Purchase

Learners will be able to:

• Calculate the value of an initial deposit as 20% of a given amount. • Determine the loan amount by subtracting the deposit from the total cost of an item. • Apply the simple interest equation to calculate the total value of a loan after 3 years, including the principal and interest. • Divide the total loan amount by the number of monthly instalments to determine the value of each instalment. • Calculate the total amount paid for an item by adding the deposit to the total loan amount.