Schedule 2
(Regulation 4)
FORMULA FOR CALCULATING AGREEMENT CHARGES
Agreement charges shall be calculated in accordance with following formula–
R = 100 x c
T x P
Where–
R is the agreement charges calculated as a rate per cent per annum;
C is the amount of hire-purchase charges expressed in dollars and fractions of dollars;
T is the time that elapses between the time fixed by or under the agreement for the making of the first installment and the time so fixed for the making of the last installment, together with–
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(a) one week where the installments are payable under the agreement at regular weekly intervals;
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(b) two weeks where the installments are payable under the agreement at regular fortnightly intervals; or
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(c) one month where the installments are payable under the agreement at regular monthly intervals;
expressed in years and fractions of years; and
P is the difference between the cash price of the goods and the amount of the deposit, together with –
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(a) freight, if any;
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(b) insurance, if any; or
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(c) any other fees;
expressed in dollars and cents.