=+5" The Snack company is considering buying £30,000 of new kitchen equipment through a hire purchase agreement stretching over 18 months. £10,000 is paid as a deposit and the hire purchase company will require 18 monthly payments of

£1,222.22 each to pay for the £20,000 borrowed, before the ownership of the equip-

ment is transferred to the snack company. The rate of interest the Snack company would pay on an overdraft is 10 per cent per annum.

Required Calculate the annual percentage rate paid on the hire purchase contract.