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Question 3 1.1 Mr. Vundia wants to purchase a new lounge suite. He goes to a local furniture shop and the sales person shows him the lounge suite on the picture below. ROMA SPOE SACTION LEATHER LOOK LOUNGE SUITE WAS R15 999 NOW R14 999 Hire-Purchase Options: Deposit: 15% of the new purchase price. R 759, 64 x 24 months Total Cost-R 3.1.1 Explain the meaning of interest rate according to the given context (2) 3.1.2 Calculate the discount amount. (2) 3.1.3 Calculate the percentage discount (rounded to one decimal place), using the following formula: Percentage discount=discount x 100% old price (3) 3.1.4 Calculate the deposit on the lounge suite if the hire-purchase option is 3.2. used. Mr Vundla does not have the cash and decided to go to Bank X to make a personal loan of R15 000. The Bank offers him 15% interest compounded annually. (3) Mr Vundla claim that he will pay R 19 837,50 after 24 years. Verify if his claim is correct. (5) [15]

Question 3 1.1 Mr. Vundia wants to purchase a new lounge suite. He goes to a local furniture shop and the sales person shows him the lounge suite on the picture below. ROMA SPOE SACTION LEATHER LOOK LOUNGE SUITE WAS R15 999 NOW R14 999 Hire-Purchase Options: Deposit: 15% of the new purchase price. R 759, 64 x 24 months Total Cost-R 3.1.1 Explain the meaning of interest rate according to the given context (2) 3.1.2 Calculate the discount amount. (2) 3.1.3 Calculate the percentage discount (rounded to one decimal place), using the following formula: Percentage discount=discount x 100% old price (3) 3.1.4 Calculate the deposit on the lounge suite if the hire-purchase option is 3.2. used. Mr Vundla does not have the cash and decided to go to Bank X to make a personal loan of R15 000. The Bank offers him 15% interest compounded annually. (3) Mr Vundla claim that he will pay R 19 837,50 after 24 years. Verify if his claim is correct. (5) [15]

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question 3 1.1 Mr. Vundia wants to purchase a new lounge suite. He goes to a local furniture shop and the sales person shows him the lounge suite on the picture below. ROMA SPOE SACTION LEATHER LOOK LOUNGE SUITE WAS R15 999 NOW R14 999 Hire-Purchase Options: Deposit: 15% of the new purchase price. R 759, 64 x 24 months Total Cost-R 3.1.1 Explain the meaning of interest rate according to the given context (2) 3.1.2 Calculate the discount amount. (2) 3.1.3 Calculate the percentage discount (rounded to one decimal place), using the following formula: Percentage discount=discount x 100% old price (3) 3.1.4 Calculate the deposit on the lounge suite if the hire-purchase option is 3.2. used. Mr Vundla does not have the cash and decided to go to Bank X to make a personal loan of R15 000. The Bank offers him 15% interest compounded annually. (3) Mr Vundla claim that he will pay R 19 837,50 after 24 years. Verify if his claim is correct. (5) [15]
Transcribed Image Text:Question 3 1.1 Mr. Vundia wants to purchase a new lounge suite. He goes to a local furniture shop and the sales person shows him the lounge suite on the picture below. ROMA SPOE SACTION LEATHER LOOK LOUNGE SUITE WAS R15 999 NOW R14 999 Hire-Purchase Options: Deposit: 15% of the new purchase price. R 759, 64 x 24 months Total Cost-R 3.1.1 Explain the meaning of interest rate according to the given context (2) 3.1.2 Calculate the discount amount. (2) 3.1.3 Calculate the percentage discount (rounded to one decimal place), using the following formula: Percentage discount=discount x 100% old price (3) 3.1.4 Calculate the deposit on the lounge suite if the hire-purchase option is 3.2. used. Mr Vundla does not have the cash and decided to go to Bank X to make a personal loan of R15 000. The Bank offers him 15% interest compounded annually. (3) Mr Vundla claim that he will pay R 19 837,50 after 24 years. Verify if his claim is correct. (5) [15]
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