SAVE R2000 CASH R9999 DEPOSIT R1000 TERM 24MONTHS MONTHLY INSTALMENT R484,96 ANNUAL INTEREST RATE 26% TOTAL REPAYABLE R13817,66 WHAT IS THE DEPOSIT IF YOU WISH TO TAKE OUT THE HIRE PURCHASE LOAN? I GOT 6.90883 IT IS CORRECT? PLS HELP THANKS U
To calculate the deposit required for a hire purchase loan, we first need to understand the terms of the loan. In this case, you mentioned a purchase price of R9999, a cash saving of R2000, and a total repayment amount of R13817.66 over a 24-month term with a monthly installment of R484.96 and an annual interest rate of 26%.
To calculate the deposit, we need to subtract the cash saving from the total purchase price (R9999 - R2000 = R7999). This gives us the amount that needs to be financed.
Next, we need to calculate the total amount payable for the loan. The monthly installment multiplied by the number of months in the loan term will provide this figure: R484.96 x 24 = R11639.04.
To find the total interest paid, we subtract the total repayment amount from the total amount payable (R11639.04 - R13817.66 = -R2178.62).
Now, we can calculate the interest rate paid on the loan. The total interest paid divided by the total amount payable, multiplied by 100, will give us the interest rate as a percentage: (-R2178.62/R11639.04) x 100 = -18.72%.
Based on this calculation, it appears that the loan is offering a negative interest rate, which is not possible. Therefore, the result of 6.90883 for the deposit calculation is incorrect.
To determine the correct deposit amount, we need additional information. It is likely that the information provided contains errors or incorrect calculations. Please double-check the input values and calculation method to obtain an accurate result.