. Thobani buys a set of drums for his band
that costs R18 000. He pays 20% in cash
as a deposit and the balance is paid on
a hire purchase loan agreement.
He pays
for the drums over three years and the
interest charged is 12% p.a. simple interest
on the full amount of the loan.
de ens ensol brug
a) Calculate the amount that he must pay in cash as a deposit.
b) Determine the amount of money that he borrows on the loan agreement
c) Calculate how much he will pay over three years, excluding the deposit.
d) Calculate how much he will have to pay each month, assuming that he
pays an equal amount each month.
e) Calculate the total amount that Thobani pays for the drums over three yea
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Respuesta :

a) Thobani must pay R3,600 in cash as a deposit (20% of R18,000).
b) Thobani borrows R14,400 on the loan agreement (R18,000 - R3,600).
c) Over three years, excluding the deposit, Thobani will pay R5,184 in interest (R14,400 * 12% * 3).
d) Thobani will have to pay R400 each month (R14,400 / 36 months).
e) The total amount Thobani pays for the drums over three years is R22,584 (R18,000 + R5,184).