Question

Michael a farmer wants to buy a new tractor. The price of the tractor is 160 000 VAT excluded He can afford a deposit of R20000. He decides to buy the tractor on hire purchase over a period of 60 months with simple interest of 10%. What would he pay in total after 60 months?

Answer 1

Below(R 230000)

Explanation:

14,000(1+10x+5/100)=21,000

but after 60 months 10 percent intrest so

23,000.

Answer 2

Below(R 230000)

Explanation:

14,000(1+10x+5/100)=21,000

but after 60 months 10 percent intrest so

23,000.