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Kyle wants to buy a television on a hire purchase agreement. the cash price of the television is R5600. she is required to pay a deposit of 15% and pay the remaining loan amount off over 24 months at an interest rate of 14% p.a. what are kyles monthly repayment? keep your answer to the nearest rand.

Sagot :

Ajeigbeibraheemidn

Kyles's monthly repayment on the television based on hire purchase agreement is R229

What is the monthly repayment?

The monthly repayment is the amount paid monthly with interest on a particular loan or to recover from debt.

From the given information:

  • The price of the television = R5600
  • Initial deposit = 15% of cash price = 0.15 × 5600 = 840

Thus

principal amount left to be repaid = 5600 - 840 = 4760

Using the formula:

[tex]\mathbf{M=\dfrac{P( \dfrac{r}{12}) (1+\dfrac{r}{12})^n }{(1+\dfrac{r}{12})^n - 1}}[/tex]

[tex]\mathbf{M=\dfrac{4760( \dfrac{0.14}{12}) (1+\dfrac{0.14}{12})^{24} }{(1+\dfrac{0.14}{12})^{24} - 1}}[/tex]

M = R228.54

M ≅ R229

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