Answer:
The amount of deposit required is R37,999 for both
The percentage of purchase price for the required deposit is 20%
Therefore, deposit required=20%*R189,995
=R37,999
The balance owed is the outstanding balance after payment of deposit plus the interest, bearing in mind that interest is computed using the simple interest approach
I=PRT
balance after payment of deposit=R189,995-R37,999
=R151,996
R=13.5% per year
T=48 months and 54 months
Interest on 48 month option=151,996*13.5%*48/12
= R82,077.84
Interest on 54 month option=151,996*13.5%*54/12
= R 92,337.57
The total payment without the initial deposit is the outstanding balance after payment of deposit plus the interest
Total payment for 48 month option=R151,996+R 92,337.57
=R 244,333.57
Total payment for 54 month option=R151,996+R82,077.84
=R 234,073.84
Hope it helped!