The Hypothetical Finance Ltd has structured a hire-purchase deal. The required downpayment is 20 per cent of the investment cost.The hire-term is...

In a hire-purchase agreement the buyer gets immediate
custody of the goods purchased and has to pay for them over an extended period of time
in the form of regular installments. Only after all the installments are paid does
ownership of the goods pass on to the buyer. In case any installment is not paid, the
seller can take possession of goods and sell them to recover the remaining
cost.

The question you have asked is about a hire-purchase
agreement with a term of 4 years and payments have to be made on a quarterly basis. This
makes the total number of installments equal to 4*4 or
16.

As the person is already the owner of the product after
16 installments there is no necessity to make 24 payments as that would imply paying 8
extra installments after gaining ownership.

Due to this
inconsistency, the interest rebate you require cannot be
determined.