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Calculate hire purchase price

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Question - Infinite Inc. purchased a tractor on hire purchase from Dig Hard Finance Co on January 1, 2018, paying $ $65000 immediately and agreeing to pay three annual installments of $115,000 each on December 31, every year. The cash price of the machine is $378,500, and the vendors charge interest @ 6% per annum. Calculate a) Hire Purchase price b) Total interest c) Outstanding cash price at time of 1st installment d). Interest on 1st installment e). Principal and interest portion at the 1st payment of installment year 1.

Reference no: EM133078072

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