Answer:a) To calculate the amount of the car including VAT, we need to add the value-added tax (VAT) to the cost of the car. VAT is usually a percentage of the base price.
Given that the car cost R250,000 excluding VAT, we'll calculate the VAT amount using a VAT rate of 15% (assuming this is the applicable rate):
VAT = 0.15 * R250,000 = R37,500
To find the total cost of the car including VAT, we add the VAT amount to the original cost:
Total cost of the car including VAT = R250,000 + R37,500 = R287,500
Therefore, the amount of the car including VAT is R287,500.
b) To calculate John's monthly payment, we can use the hire purchase formula:
Monthly payment = (Principal + Interest) / Number of months
First, we need to calculate the principal, which is the remaining amount after the deposit:
Principal = Total cost of the car including VAT - Deposit
= R287,500 - R30,000
= R257,500
Next, we need to calculate the interest on the principal. The interest rate is given as 27% per annum, but since we're calculating monthly payments, we need to convert it to a monthly rate.
Monthly interest rate = Annual interest rate / 12
= 27% / 12
= 0.27 / 12
= 0.0225
Now we can calculate the monthly payment:
Monthly payment = (Principal + (Principal * Monthly interest rate)) / Number of months
= (R257,500 + (R257,500 * 0.0225)) / (5 * 12)
= (R257,500 + R5,793.75) / 60
= R263,293.75 / 60
= R4,388.23 (rounded to 2 decimal places)
Therefore, John's monthly payment for the car is approximately R4,388.23.
Explanation: