This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Alright Mazindela — let's do this. 3.2.1 Hire-purchase is a system where a buyer takes possession of goods immediately and pays for them in regular installments, with ownership transferring only after the final payment has been made. 3.2.2 Step 1: Determine the cash price of the food processor. The deposit of R974,85 represents 15% of the cash price. Let P be the cash price. 0.15 × P = R974.85 P = R974.850.15 P = R6499.00 Step 2: Show how the deposit was calculated. Deposit = 15\% of R6499.00 Deposit = 0.15 × R6499.00 Deposit = R974.85 3.2.3 Step 1: Calculate the amount financed after the deposit. Amount financed = Cash Price - Deposit Amount financed = R6499.00 - R974.85 = R5524.15 Step 2: Calculate the simple interest on the amount financed. The interest rate is 18.5% p.a. simple interest for 3 years. Interest = Principal × Rate × Time Interest = R5524.15 × 0.185 × 3 Interest = R3067.99325 Step 3: Calculate the total hire-purchase cost. Total Hire-Purchase Cost = Deposit + Amount financed + Interest Total Hire-Purchase Cost = R974.85 + R5524.15 + R3067.99325 Total Hire-Purchase Cost = R9566.99325 Step 4: Calculate the discount (savings) if buying cash instead of hire-purchase. Discount = Total Hire-Purchase Cost - Cash Price Discount = R9566.99325 - R6499.00 = R3067.99325 Step 5: Calculate the discount percentage offered (relative to the total hire-purchase cost). Discount Percentage = DiscountTotal Hire-Purchase Cost × 100\% Discount Percentage = R3067.99325R9566.99325 × 100\% Discount Percentage ≈ 0.32069 × 100\% Discount Percentage = 32.07\% 3.2.4 Step 1: Calculate the amount financed after the deposit. Amount financed = Cash Price - Deposit Amount financed = R6499.00 - R974.85 = R5524.15 Step 2: Calculate the simple interest on the amount financed. Interest = Principal × Rate × Time Interest = R5524.15 × 0.185 × 3 Interest = R3067.99325 Step 3: Calculate the total amount payable after three years, excluding the deposit. Amount Payable = Amount financed + Interest Amount Payable = R5524.15 + R3067.99325 Amount Payable = R8592.14 3.2.5 Step 1: Calculate the total hire-purchase cost. Total Hire-Purchase Cost = Deposit + Amount Payable (from 3.2.4) Total Hire-Purchase Cost = R974.85 +