RobsonLittle Red Book ▸ Hire Purchase Charges

Chapter 3 - Question 11

Given the cash price of an item together with the percentage rate required, calculate the HP charges for a given repayment.

Solution 1

I had no idea how hire purchasing works, so I had a look round the web for some information. As far as I can tell a total price is agreed upon and then the buyer pays equal amounts every month until they reach that amount. They usually pay a deposit, but the question doesn't mention that so I wont include that part of the deal.

I'm not certain that's how it works, but I can always update my answer if I discover it works differently.

<?    // a random cash price of an item in pounds    $cash_price = mt_rand(5, 20);    // a random percentage rate    $percentage_rate = mt_rand(5, 50);    // a random number of repayment periods    $repayments = mt_rand(2, 10);        // the total amount to pay is the cash price plus the percentage    $total = $cash_price + ($cash_price * ($percentage_rate / 100));        // the amount to pay each month is the total amount    // divided by the number of repayments    $repayment = $total / $repayments;        // output the original values    echo   . number_format($cash_price, 2) . '<br/>'         . 'Percentage Rate: ' . $percentage_rate . '%<br/>'         . 'Repayments: ' . $repayments;            // output the total amount to be paid        echo . number_format($repayment, 2) . '</b>'; ?>

Which produces:

Cash Price: 15.00
Percentage Rate: 24%
Repayments: 9

Monthly Amount: 2.07


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