Question

Ms Mohale wants to buy a computer through PC Warehouse. She can afford to pay R500 per month. PC Warehouse sells computers through hire purchase loans over 24 months with an interest rate of 15% per annum. Calculate the price of a computer that she could afford.

Answer 1

Answer:

price of a computer that she could afford R 9230.769

Step-by-step explanation:

Given data

amount pay = R500 per month = 500 × 24 = R 12000 total pay

time period =24 months = 24 /12 = 2 years

rate = 15 % per annum

to find out

price of a computer that she could afford

Solution

we know formula

Amount Paid = Principal × (1+(RT/100))

put value principal pay and R and T and we get

principal = Amount / (1+(RT/100))

principal = 1200 / (1+(15 ×2 )/100))

principal  = 9230.769

price of a computer that she could afford R 9230.769