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Ogembo bought a sofa set on hire purchase by paying a deposit of sh 3 600. The balance was to be paid in 8 equal monthly instalments of sh 1 350. The hire purchase price was 20% more than the cash price

Class: KCPE

Subject: Mathematics

Topic: Measurement-money

Lesson Summary

Ogembo bought a sofa set on hire purchase by paying a deposit of sh 3 600. The balance was to be paid in 8 equal monthly instalments of sh 1 350. The hire purchase price was 20% more than the cash price. What was the cash price of the sofa set?

A.sh 14,400
B.sh 13,500
C.sh 12,000
D.sh 17,280



Text Answer


Amount paid by installments = 1 350 x 8 = sh 10 800

Deposit paid = sh 3 600

Hire purchase price= 10 800+ 3 600= sh 14 400

Let cash price be 100%

HP price is 20% more, i.e 120% of cash price 120% of cash price= sh 14 400

1% of cash price=14400120

Hence cash price =14400120×100=𝑠ℎ 12,000

The correct answer is C (sh 12 000).

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