Question 4

4.1 Peter wants to buy a computer costing R7 950, on a hire-purchase agreement.
The conditions of the agreement are:

  • Peter must pay a deposit of 25% of the purchase price.
  • Interest is charged at 15% per annum simple interest on the balance.
  • He must also pay a compulsory monthly insurance premium of R70,75.
  • The balance is to be settled in monthly installments.

4.1.1 Calculate the balance after Peter pays the deposit. (2)

4.1.2 If the balance is to be paid off in 24 months, calculate Peter’s total
monthly instalment. (4)

4.2 The table below shows the cost of one British pound and one US dollar in South
African Rand.

4.2.1 It costs £55 to fill a car with 80 litres of petrol in England. How much will
it cost to fill up with the same quantity of petrol if you were paying in
South African rand? (1)

4.2.2 An English visitor to the USA notices a car on sale for $5 500. A similar
vehicle in England costs £3 500. In which country is the car more
expensive? Justify your answer with relevant calculations. (3)


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