CSEC – MATHEMATICS (2023/2024)

SCHOOL BASED ASSESSMENT

Year of Examination: 2024

Subject: Mathematics

Candidate Number: 030033

Candidate Name: Tarquin Clark

Name of Teacher: Mrs. Carol Gill

Topic/Title: An investigation into the

differences, price-wise between
hire purchase and cash price of
certain selected appliances in
Barbados.

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Table of Contents
Introduction.....................................................................................3
Data Collected and Tabulations.......................................................4
Graph Showing Difference Between Cash and Hire Purchase........5
Analysis of Data Discussions of Findings.......................................6
Conclusion.......................................................................................7

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 Introduction

Title: An investigation into the differences, price-wise between hire purchase and
cash price of certain selected appliances in Barbados.

I chose this topic because in everyday life, choices like these must be
answered. The skills that will be acquired from completing this SBA are vital to
the future of a buyer, and after doing this SBA it will be easier to visualise the
price difference between two buying choices and why it is so.

Objectives:

1) Determine which of the two choices available is the better

choice, economically that is; hire purchase or cash price.

2) Scale and graph the results that are found, and deduct which is a better
choice for each of the two stores used in this SBA example.

Within the realm of customer-merchant activities, a pivotal choice is often

made for both parties, which may cut down or add to the cost of an item being
purchased. The choice being discussed is the question that will be analysed within
this SBA. Which is the more economical option: cash price, or hire purchase?

Cash Price is the direct amount of money that is exchanged for a series of, or
a singular good(s)/service(s), in one fully-complete exchange when goods are
produced by a seller. Hire Purchase, on the other hand, is a method in which a buy
can obtain an item, making one initial payment followed by regularly-payed
installments. The buyer often has full access and ownership from once the hire
purchase begins, not ends.

In this School-Based Assessment I used two separate stores and chose three
appliances from each of those stores on which to conduct my research. For all six
appliances, the Cash Price was asked for and the Hire Purchase price was
calculated. Then, the deduction was made and the question: “which is more
economical?” was answered.

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 Data Collected and Tabulations

Store 1 (Courts)

APPLIANCE FRIGIDAIRE WHIRLPOOL WHIRLPOOL

Stove/Oven Washing Machine Fridge

Cash Price $2,000.00 $1,900.00 $2,200.00

Deposit 130 @ $22.31 130 @ $21.19 130 @ $24.54
Installments $22.31 $21.19 $24.54
Total Hire Purchase Price $2,900.30 $2,754.70 $3,190.20
Difference as % of cash price 69.0% 69.0% 69.0%

Store 2 (Massy)

APPLIANCE FRIGIDAIRE WHIRLPOOL WHIRLPOOL

Stove/Oven Washing Machine Fridge

Cash Price $2,500.00 $2,200.00 $2,500.00

Deposit $29.32 $25.80 $29.50
Installments 130 @ $29.32 130 @ $25.80 130 @ $29.50
Total Hire Purchase Price $3,811.60 $3,354.00 $3,835.00
Difference as % of cash price 65.6% 65.6% 65.2%

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Graph Showing Difference Between Cash and Hire Purchase

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 Analysis of Data Discussions of Findings

Analysis of Data:
The data collected on the three appliances, from two shops, left us with (3*2) 6
figures from which to deduct whether it is a more economical option to pay with direct
cash as oppose to buying something using its option of hire purchase price.

Store 1
In store 1, the cash price of the stove was $2,000. This was met with a 69.0%
markup to $2,900.30, with 130 installments of $22.31. The cash price of the washing
machine was $1,900. A similar 69.0% markup led to the hire purchase price being
$2,754.70. This is paid with 130 payments of $21.19. The third and last appliance; the
Fridge has a cash price of $2,200. The hire purchase price is once again given with a
69.0% mark up. This means a markup of $990.20, or a final price of $3,190.20, paid
with 130 installments of $24.54.

Store 2
In store 2, the cash prices of the stove, washing machine and fridge were $2,500,
$2,200 and $2,500 respectively. The markups were 65.6% across the stove and washing
machine, and 65.2% on the fridge. This lead to these hire purchase prices and
installments: The stove had 130 installments of $29.32, and a final price of $3,811.60.
The washing machine had 130 installments of $25.80, and a final price of $3,354.00.
The final appliance, the fridge, even though it had the same starting price as the stove
($2,500.00) had a significantly lower hire purchase price of $3,835.00. This is paid with
130 installments of $29.50, and a markup percentage of 65.2%.

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Conclusion

Both stores offer a series of installments over a 130-week period. There is no

obvious reason as to why the two stores have the same time period for their installments.
Store 1 has a higher % markup on its prices for hire purchase, by 3-4%, but lower
appliance prices to counter this. Store 2 has a lower % markup and higher prices.I was
unable to find out why both stores’ installments are made weekly as oppose to monthly,
this had seemed to change at some point in 2022.

After completing this SBA, it is obvious to me that cash price is the better option
IF IT IS AVAILABLE. Hire purchase is a choice given to those who cannot afford said
item at this direct point in time, and may need some time in order to make the money
necessary for the purchase of the item.

I believe that it is made more expensive by stores in order to deter people from
using this method. I believe that this is because a person using hire purchase as a
payment method adds stress to the workers’ loads and needs organisation from the
stores’ end in order to accommodate the regular payments.

To sum up everything that has been said in this SBA, paying for an appliance by
cash as oppose to hire purchase is a significantly more economical choice.