Contents
TITTLE.......................................................................................................2
INTRODUCTION........................................................................................3
METHOD OF DATA COLLECTION..............................................................4
PRESENTATION OF DATA.........................................................................5
Analysis Of Data.......................................................................................8
1
TITTLE
An investigation to determine the most suitable Hire purchase plan for a 55-inch Samsung TV
from Courts in Chaguanas, Trinidad.
2
INTRODUCTION
A few weeks ago, granny’s 55-inch Samsung TV stopped working due to high voltage she
experienced during a stormy day. She was advised by a technician to repair it would be costly,
so she purchased a new one. However, her finances doesn’t allow her to purchase it cash, so
she decided to explore other options.
The objectives are to compare three different avenues of hire purchase and looking at the best
plan available to her.
Interest
Time for repayment
Down payment
Monthly installment cost
3
METHOD OF DATA
COLLECTION
Data was collected by interviewing my grandmother and finding out:
1. The amount of money she has available for down payment
2. How much money she has for monthly installments
Additionally, I interviewed the local appliance store clerk to get the best hire purchase
plans available for a 55 -inch Samsung TV based on:
Monthly Installments
Interest
Time for repayment
Down payment, Service Charges
4
PRESENTATION OF DATA
Granny’s
=$500.00
=$400.00
Hire Purchase Plans :
1. Plan A- Cash Price
Samsung TV $5500.00
Plan B-
Down Payment $1500.00
Service Charges $100.00
Installments $700.00
Number Of Months For Installments 6
Total $5800.00
Table showing plan B charges
5
Plan C –
Down Payment $700.00
Service Charges $100.00
Installments $485.00
Number Of Months For Installments 12
Total $6620.00
Table showing plan C charges
Plan D-
Down Payment $350.00
Service Charges $120.00
Installments $375.00
Number Of Months For Installments 18
Total $7220.00
Table showing plan D charges
Comparative Bar Graph Of Hire Purchase Vs Cash Price
6
Chart Title
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Plan B Plan C Plan D
Cash Price Hire Purchase Plans
7
Analysis Of
Data
Plan A:
Total Cost = -$5500.00
Since this is the Cost Price
Interest % = 0%
Plan B:
Total Cost = $5500.00
Interest = Total Cost - Cash Price
= $5800.00 -$5500.00
=-$300.00
Interest % = (Interest / Cash Price) x 100
= ($300 / $5500.00) x 100
=-5.45%
8
Plan C:
Total Cost =$5500.00
Interest = Total Cost - Cash Price
= $6620.00 - $5500.00
= -$1120.00
Interest % = (Interest / Cash Price) x 100
= ($1120.00 / $5500.00) x 100
= 20.3%
Plan D:
Total Cost = $2519.00
Interest = Total Cost - Cash Price
= $7220.00 - $5500.00
= $1720.00
Interest % = (Interest / Cash Price) x 100
= ($1720.00 / $5500.00) x 100
= 31.2%
9
10
