Question
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?
Ask by Lawson Evans. in South Africa
Feb 02,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
The deposit is R 900.
Solution
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**.
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Simplify this solution Bonus Knowledge
The deposit is calculated as 10% of the cash price of the bedroom suite. So, you simply take R 9000 and multiply it by 0.10. Doing the math gives you a deposit of R 900. Now, let's see how much Kamogelo will need to finance after the deposit!
