Question
is moce o The cosh price of a bike is R220. The hire purchose price is p300 if the deposit is \( 10 \% \) fol owed by 10 equal monthly instalments, find the amount you will poy eoch month.
Ask by Harmon Powers. in South Africa
Feb 03,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
Each month, you will pay R27.
Solution
To find the amount to be paid each month, we need to calculate the total amount to be paid and then divide it by the number of months.
Given:
- The cosh price of the bike is R220.
- The hire purchase price is R300.
- The deposit is 10% of the hire purchase price.
- The remaining amount is to be paid in 10 equal monthly instalments.
Let's calculate the total amount to be paid:
Total amount = Hire purchase price - Deposit
Total amount = R300 - (10% of R300)
Total amount = R300 - (0.10 * R300)
Total amount = R300 - R30
Total amount = R270
Now, we can calculate the amount to be paid each month:
Amount per month = Total amount / Number of months
Amount per month = R270 / 10
Amount per month = R27
Therefore, the amount to be paid each month is R27.
Reviewed and approved by the UpStudy tutoring team
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Simplify this solution Extra Insights
To find the monthly installment, first, calculate the deposit, which is \(10\%\) of the hire purchase price (R300). The deposit is R30, so the financed amount becomes R300 - R30 = R270. Now, divide this balance by the 10 months, which gives you R27 per month. So, you'll pay R27 each month for 10 months. Don't forget to account for any potential interest or fees that might be included in the hire purchase agreement, as these can significantly affect your monthly payment amount. Always read the fine print before signing!
