Philani bought a scooter for R15 000. He paid 15% of the amount in cash and signed a hire-prchase agreement to pay the balance in 24 equal monthly installments. The interest rate is 10% per annum.How much did he pay in cash? Calculate the total amount that he must still pay
Philani paid 15% of R15 000 in cash, which is:
0.15 x 15 000 = R2 250
Therefore, Philani still owes:
15 000 - 2 250 = R12 750
To calculate the monthly installments, we need to first calculate the total amount with interest. The interest rate is 10% per annum, so over 24 months it will be:
10/100 x 12/12 x R12 750 = R1 275
Therefore, the total amount Philani must still pay with interest is:
R12 750 + R1 275 = R14 025
To calculate the monthly installment, we divide the total amount with interest by the number of months:
R14 025 / 24 = R584.38
Therefore, Philani paid R2 250 in cash and still owes a total of R14 025, which he will pay in 24 monthly installments of R584.38 each.
To find out how much Philani paid in cash, we need to calculate 15% of the total amount of R15 000.
Step 1: Calculate the cash payment:
15% of R15 000 = (15/100) * R15 000 = R2250
Philani paid R2250 in cash for the scooter.
Now, let's calculate the total amount that he must still pay.
Step 2: Calculate the balance amount:
The balance amount is the total cost of the scooter minus the cash payment.
Balance amount = R15 000 - R2250 = R12 750
So, the total amount that Philani must still pay is R12 750.
You can break down this balance into equal monthly installments over a period of 24 months.