Understanding Higher Purchase Agreements

Understanding Higher Purchase Agreements

Assessment

Interactive Video

Mathematics

10th Grade

Hard

Created by

Thomas White

FREE Resource

This video tutorial introduces hire purchase agreements, explaining them as short-term loans allowing buyers to acquire items before full payment. It covers the calculation of costs using simple interest rates, with examples including a lawn mower and a bed purchase. The video highlights the importance of understanding hidden costs and provides additional resources for further learning.

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25 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a higher purchase agreement?

A method of buying stocks

A short-term loan allowing purchase before full payment

A type of insurance policy

A long-term loan for buying property

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is commonly bought on higher purchase agreements?

Books

Groceries

Clothing

Household appliances

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the interest on a higher purchase agreement typically calculated?

Compound interest

Simple interest

No interest

Variable interest

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of a deposit in a higher purchase agreement?

To serve as an upfront payment

To reduce the interest rate

To increase the total loan amount

To eliminate monthly payments

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the lawn mower example, what was the initial cash price of the mower?

15,041 Rand

13,890 Rand

10,870 Rand

9,783 Rand

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the interest rate applied to Ruan's higher purchase agreement?

16%

14%

12%

10%

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much was Ruan's monthly repayment before insurance?

400 Rand

397.89 Rand

350 Rand

385.89 Rand

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