The cash price of a bedroom suite is R 9000 . Kamogelo buys the bedroom suite on a hire purchase agreement instead of paying cash. He pays a \( 10 \% \) deposit and agrees to pay the remaining balance in equal monthly instalments over 2 years. Interest is \( 42 \% \) pe year. 1. How much is the deposit?

To determine the **deposit** Kamogelo needs to pay for the bedroom suite, follow these steps: 1. **Identify the Cash Price:** - The cash price of the bedroom suite is **R 9,000**. 2. **Calculate the Deposit Percentage:** - The deposit is **10%** of the cash price. 3. **Compute the Deposit Amount:** \[ \text{Deposit} = 10\% \times \text{Cash Price} = 0.10 \times R 9,000 = R 900 \] **Final Answer:** The deposit Kamogelo must pay is **R 900**.