This is a general question about hire-purchase.in hire-purchase,

  • Thread starter Celluhh
  • Start date
  • Tags
    General
In summary, hire-purchase is a financial arrangement where the principal loan is paid in instalments, usually on a yearly or monthly basis. The term "monthly repayment" may include interest that is compounded monthly, but this may vary depending on national or local laws. In Singapore, this topic is considered practical mathematics.
  • #1
Celluhh
219
0
this is a general question about hire-purchase.

in hire-purchase, after subtracting the down payment, we get the principal loan. this loan is paid in instalments, most of the time yearly but sometimes monthly. in this case, if one has to pay monthly instalments with interest compounded monthly, when the term"monthly repayment"is used, is the interest already included inside?
 
Physics news on Phys.org
  • #2


This has nothing to do with "Calculus and Analysis" and, in fact, is not a mathematics question at all. I suspect it is a matter of national or local laws and the answer probably varies from place to place.
 
  • #3


um, I'm sorry... but in singapore, we call it math in practical situations.^^
 

1. What is hire-purchase?

Hire-purchase is a type of financial agreement in which a person can purchase an item by paying in installments over a period of time. The buyer does not take ownership of the item until the final payment is made.

2. How does hire-purchase work?

In a hire-purchase agreement, the buyer pays an initial deposit and then makes regular payments over a set period of time. The seller retains ownership of the item until the final payment is made, at which point the buyer takes ownership.

3. What are the benefits of hire-purchase?

Hire-purchase allows the buyer to acquire an item without paying the full price upfront. It also provides flexibility in terms of payment options and can be a good option for those with a limited budget.

4. What are the risks of hire-purchase?

One risk of hire-purchase is that the buyer may end up paying more for the item due to interest charges. There is also a risk of defaulting on payments, which can negatively impact credit score. Additionally, the item may be repossessed if payments are not made.

5. Is hire-purchase regulated?

Yes, hire-purchase agreements are regulated by laws and regulations in different countries. It is important for both the buyer and seller to understand and comply with these regulations to ensure a fair and legal transaction.

Similar threads

MHB What's the best financing option for Mia's used trailer purchase?
    • General Math
Replies
1
Views
818
MHB Mortgage Calc: Calculate Payment, Owed & Interest Breakdown
    • General Math
Replies
1
Views
2K
Student Loan Payment Calculation and Effective Interest Rate Analysis
    • Precalculus Mathematics Homework Help
Replies
14
Views
6K
I Finance - Find Monthly Payments (two methods)
    • General Math
Replies
2
Views
1K
[Error] too few arguments to function
    • Engineering and Comp Sci Homework Help
Replies
2
Views
1K
Science of Evaporation - General & Personal Questions
    • Chemistry
Replies
23
Views
1K
Have You Shopped with Your Credit Card in Foreign Country?
    • General Discussion
Replies
19
Views
850
MHB "Getting a personal loan from a bank" real life math problem - need a formula
    • General Math
Replies
16
Views
5K
Calculating Interest Rates for Loan of $735,000
    • Precalculus Mathematics Homework Help
Replies
4
Views
1K
MHB with Simple Interest Problems
    • General Math
Replies
2
Views
6K

Hot Threads

Recent Insights

Back
Top