QUESTION 2 John decided to start a car wash service on Saturdays in his matric year. He rented a Power washer for R300 per day. He asked his brother Tommy to help him. He pays Tommy R50 a day. John's variable expenses amount to R4 per car John charges R120 per car

Principal amount ($P$) = R5 000
Annual interest rate ($i$) = 7.8% = 0.078
Compounding frequency = yearly (so $n=1$)
Time ($t$) = 24 months = 2 years

The formula for compound interest is $A = P(1 + \frac{i}{n})^{nt}$. Since it's compounded yearly, $n=1$.

The total amount Musa will pay back for Option 1 is $\boxed{\text{R}5810.42}$.

Principal amount ($P$) = R5 000
Annual simple interest rate ($r$) = 9.5% = 0.095
Time ($t$) = 2 years

The formula for simple interest is $A = P(1 + rt)$.

The total amount Musa will pay back for Option 2 is R5950.00.

Option 1 total amount: R5810.42
Option 2 total amount: R5950.00

Musa should choose the option that requires him to pay back the least amount of money.
Since R5810.42 (Option 1) is less than R5950.00 (Option 2), Option 1 is the better choice.
Musa should choose $\boxed{\text{Option 1}}$ because it results in a lower total repayment amount.