This chemistry question involves key chemical concepts and calculations. The detailed solution below walks through each step, from identifying the reaction type to computing the final answer.
ScanSolve AI Answer
Principal amount: P = R4800 Option A: Capitec (12\% simple interest p.a., 3 years) Step 1: Simple interest formula I = P × r × t Substitute P = 4800, r = 0.12, t = 3: I = 4800 × 0.12 × 3 4800 × 0.12 = 576 576 × 3 = 1728 I = R1728 Step 2: Total repayment A_A = P + I A_A = 4800 + 1728 = 6528 A_A = R6528 Alternatively: A_A = P(1 + rt) = 4800(1 + 0.12 × 3) 1 + 0.36 = 1.36 4800 × 1.36 = 6528 Option B: ABSA (7.5\% compound interest p.a., 3 years) Step 1: Compound amount formula (annually compounded) A_B = P(1 + r)^n r = 0.075, n = 3: A_B = 4800 × (1.075)^3 Step 2: Compute (1.075)^2 1.075 × 1.075 1.075 × 1 = 1.075 1.075 × 0.075 = 0.080625 1.075 + 0.080625 = 1.155625 (1.075)^2 = 1.155625 Step 3: Compute (1.075)^3 = 1.155625 × 1.075 1.155625 × 1 = 1.155625 1.155625 × 0.07 = 0.08089375 1.155625 × 0.005 = 0.005778125 1.155625 + 0.08089375 + 0.005778125 = 1.242296875 Step 4: Total repayment A_B = 4800 × 1.242296875 4800 × 1 = 4800 4800 × 0.242296875 4800 × 0.2 = 960 4800 × 0.04 = 192 4800 × 0.002 = 9.6 4800 × 0.000296875 = 1.425 960 + 192 + 9.6 + 1.425 = 1163.025 4800 + 1163.025 = 5963.025 A_B = R5963.03 (to 2 decimal places) Comparison: Capitec: R6528 ABSA: R5963.03 ABSA total is R564.97 less. Advice: Lihle should take the ABSA loan as the total repayment is lower. c Capitec: R6528 \\[0.5em] ABSA: R5963.03 \\[0.5em] Choose ABSA