• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Hire purchase in ffm

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Hire purchase in ffm

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 21, 2021 at 5:03 pm #636158
    hadif
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    hello, i have some problem for understanding this question and answer in my textbook , i hope you can explain this to me

    For example, if a company buys a car costing $10,000 under an HP(hire purchase) agreement, the car supplier might provide HP finance over a three year period at an interest cost of 10%, and the HP payments might be say, as follows

    capital element($) interest element($) total HP payment($)
    Year 0 : down payment 2540 0 2540
    year 1 2254 746 3000
    year 2 2479 521 3000
    year 3 2727 273 3000
    total 10000 1540 11540

    so the part that i dont understand is where does capital element year 1,2,3 come from? does total HP for year 1,2,3 need to be 3000?

    September 21, 2021 at 7:52 pm #636174
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    Where has the example come from? It doesn’t look like there is sufficient information in the narrative to be able to do what they’ve done, plus you wouldn’t see anything like this in the exam. I’d therefore not concern yourself with it.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • dkessilfie on FM Chapter 1 Questions – Financial management objectives
  • ahmadhoney on ACCA Advanced Audit and Assurance (AAA) The Audit Report 3: Types of Audit Report
  • Bimasha@123 on Discounted Cash Flow Techniques – ACCA Advanced Performance Management (APM)
  • Ken Garrett on Discounted Cash Flow Techniques – ACCA Advanced Performance Management (APM)
  • Bimasha@123 on Discounted Cash Flow Techniques – ACCA Advanced Performance Management (APM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in