The difference between the cost on hire purchase and the cash price. \( 2217.20-2371.50 \)

When you purchase an item on hire purchase, you agree to pay it off in installments rather than all at once. This usually means that the total cost will be higher due to interest and fees. Here, the cost on hire purchase is \( 2371.50 \) and the cash price is \( 2217.20 \). The difference between them is \( 2371.50 - 2217.20 = 154.30 \). So, you're essentially paying an extra \( 154.30 \) for the convenience of spreading your payments out over time! In practice, many people find themselves weighing the benefits of hiring to buy against simply saving up for the cash price. While hire purchase can make it easier to obtain high-ticket items, over time those extra costs can add up. A savvy tip? Always calculate the total cost of financing and compare it with savings plans to find the best financial option for your lifestyle and budget!