Hire Purchase
1.1
Mr. Mofokeng wants to purchase a new lounge suite. He goes to a local
furniture shop and the sales
person shows him the lounge suite on the
picture
below.
ROMA 3PCE 3ACTION LEATHER
LOCK LOUNGE SUITE
WAS R15 999
NOW R14 999
Hire Purchase
Options:
Deposit: 15% of the
new purchase price.
R 759, 64 x 24
months
Total Cost R
1.1.1 Calculate the discounted amount.
1.1.2 Calculate the percentage discount (rounded to one decimal place),
using the following formula:
Percentage discount
discount
old price
x 100%
1.2
1.1.3 Calculate the deposit on the lounge suite if the hire-purchase option is
used.
1.1.4 What will be the total cost if Mr Mofokeng purchased the lounge suite
on the hire-purchase option?
1.1.5 How much will be saved if the cash option is used rather than the
hirepurchase option to buy the lounge suite?
Mr Mofokeng does not have the cash and decided to go to Bank X to make a
personal loan of R15 000. The Bank offers him 15% interest compounded
annually.
Calculate the total amount he will pay back to Bank X after 24 months.
(2)
(3)
(2)
(3)
(2)
(4)
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