Hire Purchase and Percentage Errors

Understanding Hire Purchase

Hire purchase is a method of buying goods through making installment payments over time. The buyer gains use of the item immediately but only owns it after the final payment.

• Initial Deposit: A down payment made at the start.
• Installments: Regular payments made over a period.
• Total Cost: Sum of the deposit and all installment payments.

Calculating Hire Purchase

To calculate the total hire purchase cost:

• Identify the initial deposit.
• Calculate the total of all installment payments.
• Add the deposit to the total installment payments.

Understanding Percentage Errors

Percentage error measures how inaccurate a measurement is, compared to the true value. It is useful in assessing the precision of calculations or measurements.

Formula for Percentage Error

The formula for calculating percentage error is:

$$\text{Percentage Error} = \left( \frac{\text{Approximate Value} - \text{Exact Value}}{\text{Exact Value}} \right) \times 100\%$$