Mathematics, 30.03.2021 20:00, smelcher3900
Derick wants to buy himself a new car and decides to purchase a VW Polo Vivo at R179900.He consider a hire purchases contract and he uses a vehicle finance calculator on the internet to determine how much the car will cost him .He will pay a deposit of R15000,00 and there will be a balloon payment of 20% of the cost price of the car at the end of the period. There is a once off initiation fee of R1207,50 payable which is included in the amount financed amount in equal monthly instalments over a period of 5 years at an interest rate of 13,75% per year
1. How to calculate the balloon payment of 20% on the cost price, payable at the end of the period?
2. How the financed amount of R166107,50 calculated?
3. How to calculate the total cost of the vehicle?
4. Derick is concerned that he will not be able to pay the monthly payment and decides to postpone the purchases of the vehicle with two years. How much would the vehicle, which costs R179900,00 during the present year, cost in two years'time if the expected inflation rate for the following two years is 6,35% per year?
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Derick wants to buy himself a new car and decides to purchase a VW Polo Vivo at R179900.He consider...
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