2. A new IV costs R6 900 cash. It is available on hire purchase with a deposit of \( 15 \% \) followed by 12 instalments of R558.50. Find the total hire purchase price and the extra amount that you would pay (on top of the cash price) using hire purchose

To determine the **total hire purchase price** and the **extra amount paid** compared to the cash price, follow these steps: ### 1. Calculate the Deposit The deposit is **15%** of the cash price. \[ \text{Deposit} = 15\% \times R6,\!900 = 0.15 \times R6,\!900 = R1,\!035 \] ### 2. Calculate the Total of Instalments There are **12 instalments** of **R558.50** each. \[ \text{Total Instalments} = 12 \times R558.50 = R6,\!702 \] ### 3. Determine the Total Hire Purchase Price Add the deposit to the total instalments. \[ \text{Total Hire Purchase Price} = \text{Deposit} + \text{Total Instalments} = R1,\!035 + R6,\!702 = R7,\!737 \] ### 4. Calculate the Extra Amount Paid Subtract the cash price from the total hire purchase price to find the extra amount paid. \[ \text{Extra Amount} = \text{Total Hire Purchase Price} - \text{Cash Price} = R7,\!737 - R6,\!900 = R837 \] ### **Summary** - **Total Hire Purchase Price:** R7,737 - **Extra Amount Paid:** R837 So, by choosing the hire purchase option, you pay an additional **R837** over the cash price of **R6,900**.