01 HIRE PURCHASE

What is hire purchases?

Hire purchase is a method of buying goods in which payment of purchase price is spread over a specific period of payment of an initial deposit followed by regular installments. 

The deposit is called down payment.

Items that can be bought through hire purchases:

1. Mobile devices
2. Motor vehicles
3. Computers
4. Industrial machinery
5. Equipment
6. Furniture

Advantages of buying through hire purchase:

1. You do not need large amounts of cash to buy an asset
2. The seller is more willing to allow you to make small regular payments as the assets stay in his/her ownership until you have made all the repayments
3. As the repayment amounts are fixed, it is easier to budget or manage your cash flow
4. Higher purchase loans are handy for businesses who are buying assets that do not qualify for fixed assets loans

Disadvantages of buying through hire purchase:

1. You end up paying more for the asset than you would if you paid outright. On top of that, you would have to service the interest on the loan
2. The seller can take back the asset if you fail to make a scheduled repayment. This is true even if you have already paid a substantial amount for the asset

source: http://www.infinitifinancialservicesuk.com

01 APPLICATION OF MATHEMATICS IN THE REAL WORLD: SCENARIO 2

KNOWLEDGE & SKILLS

Enable students to

·      develop the necessary process skills for the acquisition and application of mathematical concepts and skills;

·      develop the mathematical thinking and problem solving skills and apply these skills to formulate and solve problems;

·      recognise and use connections among mathematical ideas, and between mathematics and other disciplines;

Scenario 2

SP Services supplies electricity to households and businesses in Singapore. It also provides billing and payment collection on behalf of various utility service providers such as the Public Utilities Board for water charges, City Gas for gas charges and the respective refuse companies for refuse removal fees. The bill charges are for the period reflected here (ie 21 May 2013 to 19 Jun 2013, as shown in the sample bill). 

Source: http://www.singaporepower.com.sg/irj/servlet/prt/portal/prtroot/docs/guid/b051fb9b-cb6c-2e10-c498-b8af349b0176?spstab=Our%20Services




1. What information does each component of the bill give?
2. Provide information on what should be the (i) constants and (ii) variables.
3. POST your responses as comments.

01 APPLICATION OF MATH IN THE REAL WORLD (FINANCE MATTERS)

KNOWLEDGE & SKILLS

Enable students to

·      develop the necessary process skills for the acquisition and application of mathematical concepts and skills;

·      develop the mathematical thinking and problem solving skills and apply these skills to formulate and solve problems;

·      recognise and use connections among mathematical ideas, and between mathematics and other disciplines;

Scenario 1

The Samsung Galaxy S4 was released in April 2013. All three telcos released their price plans for the Singapore market. 

1. Based on your own personal usage and affordability which plan would you subscribe to and why?
2. Your analysis should include what should be the (i) constants and (ii) variables.
3. POST your responses as comments.

reference: http://asia.cnet.com/m1-starhub-and-singtel-reveal-samsung-galaxy-s4-price-plans-for-sg-update-62221208.htm