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
Here are the answers to the questions: 5.1) Hire-purchase is a credit agreement where a buyer takes possession of goods immediately but pays for them in instalments over an agreed period. Ownership of the goods only transfers to the buyer once the final instalment has been paid. 5.2) Step 1: Identify the original price and the special price. Original Price = R7 139.99 Special Price = R6 499.00 Step 2: Calculate the discount amount. Discount Amount = Original Price - Special Price Discount Amount = R7\,139.99 - R6\,499.00 Discount Amount = R640.99 The discount amount on the Kenwood Titanium Chef is R640.99. 5.3) Step 1: Identify the special price and the deposit percentage. Special Price = R6 499.00 Deposit Percentage = 15% Step 2: Calculate the deposit amount based on the special price. Deposit Amount = Special Price × Deposit Percentage Deposit Amount = R6\,499.00 × 0.15 Deposit Amount = R974.85 The deposit was calculated as 15\% of the special price of R6 499.00, which is R974.85. 5.4) The interest rate charged on the financed amount is 18.5% annual simple interest. 5.5) Step 1: Calculate the financed amount (the principal loan amount). Financed Amount = Special Price - Deposit Amount Financed Amount = R6\,499.00 - R974.85 Financed Amount = R5\,524.15 Step 2: Calculate the simple interest using the formula I = P × R × T. Where: P = Financed Amount = R5\,524.15 R = Interest Rate = 18.5\% = 0.185 T = Time in years = 3 years I = R5\,524.15 × 0.185 × 3 I = R3\,065.89325 Step 3: Calculate the total amount payable after three years, excluding the deposit. This is the financed amount plus the interest. Total Payable = Financed Amount + Interest Total Payable = R5\,524.15 + R3\,065.89325 Total Payable = R8\,590.04325 Step 4: Round the total payable amount to two decimal places. Total Payable ≈ R8\,590.04 The amount payable after three years, excluding the deposit, is R8 590.04. That's 2 down. 3 left today — send the next one.