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 Mimi — let's do this. Here are the answers for the NISSAN NP300 special offer questions: 3.1) Step 1: Identify the cash price from the table. The "Vehicle Price" is the cash price. The cash price is R221 180. The cash price of the NISSAN NP300 is R221 180.00. 3.2) Step 1: Identify the number of months for instalments. The table shows "Months" as 60. Step 2: Convert months to years. There are 12 months in a year. Number of years = Number of months12 Number of years = 60 months12 months/year = 5 years It will take 5 years to pay for the vehicle. 3.3) Step 1: Identify the vehicle price and deposit percentage. Vehicle Price = R221 180 Deposit = 11% Step 2: Calculate the deposit amount. Deposit amount = Vehicle Price × Deposit percentage Deposit amount = R221\,180 × 0.11 Deposit amount = R24\,329.80 The amount of the deposit needed is R24 329.80. 3.4) Step 1: Identify the components of the total payment. Monthly instalments = R2 991 Number of months = 60 Residual = R99 218 Deposit = R24 329.80 (calculated in 3.3) Step 2: Calculate the total amount paid in monthly instalments. Total monthly instalments = Monthly instalment × Number of months Total monthly instalments = R2\,991 × 60 = R179\,460 Step 3: Add the total monthly instalments, deposit, and residual to find the total payment. Total Payment = Total monthly instalments + Deposit + Residual Total Payment = R179\,460 + R24\,329.80 + R99\,218 Total Payment = R303\,007.80 The calculation for the Total Payment is: (R2\,991 × 60) + R24\,329.80 + R99\,218 = R179\,460 + R24\,329.80 + R99\,218 = R303 007.80 3.5) Step 1: Identify the cash price and the total payment in instalments. Cash Price = R221 180 Total Payment (instalments) = R303 007.80 Step 2: Calculate the saving for paying cash. Saving = Total Payment (instalments) - Cash Price Saving = R303\,007.80 - R221\,180 Saving = R81\,827.80 The person paying cash will save R81 827.80. 3.6) Step 1: Compare the total cost of each payment method. Cash Payment = R221 180 Instalment Payment = R303 007.80 Step 2: Determine which method has a lower total cost. The cash payment of R221 180 is less than the instalment payment of R303 007.80. Step 3: Explain why it is the best value for money. The cash payment is the best value for money. This is because paying cash avoids the additional costs associated with interest, fees, and the residual amount that are included in the total instalment payment. The total cost for paying cash (R221 180) is significantly lower than the total cost for paying in instalments (R303 007.80). What's next?