Higgins Montgomery
07/15/2024 · Elementary School

(i) Calculate her monthly payment. Adelaide needs a printer for his new office. The cost of the printer is R 15000 . This is much too expensive for Adelaide to pay at once, so she opts for a hire purchase agreement, whereby she will have to pay a deposit of \( 15 \% \) of the cost and pay back the balance, plus \( 18 \% \) p.a. simple interest, by means of monthly payments over a period of 5 years. Adelaide works out that she can afford the deposit and can manage to pay a maximum of R500 per month. Will she be able to afford the deal?

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Adelaide can afford the deal as her monthly payment of approximately R 403.75 is within her budget of R 500.

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