Commercial arithmetic: hire purchase — KCSE Mathematics

KCSE Mathematics · 115 practice questions · 3 syllabus objectives

39 easy39 medium37 hard

What You'll Learn

Key learning outcomes for this topic, aligned to the KNEC KCSE syllabus.

Define hire purchase; calculate the hire purchase price, deposit, monthly instalment and total interest paid

Compare the hire purchase price with the cash price to determine the extra cost of buying on hire purchase

Commercial arithmetic: hire purchase

Sample Questions

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1
easySHORT ANSWER4 marks

A motorbike has a cash price of Ksh 80,000. If bought on hire purchase, there is a deposit of Ksh 16,000 followed by 18 monthly instalments of Ksh 5,000. (a) Calculate the total hire purchase price. (2 marks) (b) Find the extra amount paid compared to the cash price. (2 marks)

View Marking Scheme
Part (a) — 2 marks
Total HP = 16000 + (18 × 5000) (1 mk)
Correct total HP = Ksh 106,000 (1 mk)
Part (b) — 2 marks
Extra amount = 106000 - 80000 (1 mk)
Correct extra amount = Ksh 26,000 (1 mk)
2
easySHORT ANSWER4 marks

A laptop is available for Ksh 60,000 cash. If bought on hire purchase, a deposit of Ksh 12,000 is paid followed by 15 monthly instalments of Ksh 4,000. (a) Find the hire purchase price. (2 marks) (b) What is the total extra cost incurred when buying on hire purchase? (2 marks)

View Marking Scheme
Part (a) — 2 marks
HP = 12000 + (15 × 4000) (1 mk)
Correct HP = Ksh 72,000 (1 mk)
Part (b) — 2 marks
Extra cost = 72000 - 60000 (1 mk)
Correct extra cost = Ksh 12,000 (1 mk)
3
easySHORT ANSWER4 marks

A television set has a cash price of Ksh 40,000. It can be purchased on hire purchase by paying a deposit of Ksh 8,000 followed by 12 monthly instalments of Ksh 3,000 each. (a) Calculate the total hire purchase price. (2 marks) (b) Determine the extra amount paid compared to the cash price. (2 marks)

View Marking Scheme
Part (a) — 2 marks
Total HP = 8000 + (12 × 3000) (1 mk)
Correct total HP = Ksh 44,000 (1 mk)
Part (b) — 2 marks
Extra amount = 44000 - 40000 (1 mk)
Correct extra amount = Ksh 4,000 (1 mk)
4

A television set has a cash price of Ksh 80,000. The buyer pays a deposit of Ksh 20,000 and then pays Ksh 5,000 per month for 12 months. (a) State the total hire purchase price. (2 marks) (b) Calculate the total interest paid on the hire purchase. (2 marks)

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