Calculate the monthly instalment, cash price excluding VAT, and total cost of a rent-to-own option based on given advertisement details.

The monthly instalment for the rent-to-own option is directly stated in the advertisement under "OPTION 1: RENT-TO-OWN".
The monthly instalment is R1 549 p/m.

$$\text{Monthly instalment} = \boxed{\text{R}1\,549}$$

The cash price including VAT is R78 200. In South Africa, the standard VAT rate is $15\%$.
To calculate the price excluding VAT, we divide the price including VAT by $(1 + \text{VAT rate})$.

$$\text{Price excluding VAT} = \frac{\text{Cash price (incl. VAT)}}{1 + \text{VAT rate}}$$ $$\text{Price excluding VAT} = \frac{\text{R}78\,200}{1 + 0.15}$$ $$\text{Price excluding VAT} = \frac{\text{R}78\,200}{1.15}$$ $$\text{Price excluding VAT} = \boxed{\text{R}68\,000}$$

The rent-to-own option involves:

• Monthly payments of R1 549 for 7 years.
• An additional R782 initiation fee.
• A buy-out amount of R7 820 after the rental period.

First, calculate the total amount paid in monthly instalments:

$$\text{Total monthly instalments} = \text{R}1\,549 \times 7 \text{ years} \times 12 \text{ months/year}$$ $$\text{Total monthly instalments} = \text{R}1\,549 \times 84$$ $$\text{Total monthly instalments} = \text{R}130\,116$$

Next, calculate the total cost of the rent-to-own option:

$$\text{Total rent-to-own cost} = \text{Total monthly instalments} + \text{Initiation fee} + \text{Buy-out amount}$$ $$\text{Total rent-to-own cost} = \text{R}130\,116 + \text{R}782 + \text{R}7\,820$$ $$\text{Total rent-to-own cost} = \text{R}138\,718$$

The cash price (including VAT) is R78 200.

$$\text{Extra amount} = \text{Total rent-to-own cost} - \text{Cash price (incl. VAT)}$$ $$\text{Extra amount} = \text{R}138\,718 - \text{R}78\,200$$ $$\text{Extra amount} = \boxed{\text{R}60\,518}$$