5.2) Leila purchases a bedroom suite for \( R 25000 \). In order to pay for it, she takes out a hire purchase loan. The interest on the loan is \( 14 \% \) per annum for a period of 3 years and she pays a cash deposit of \( R 5000 \). 5.2.1) How much will Leila pay over the 3 years excluding the cash deposit? 5.2.2) If Leila repays the loan by equal monthly payments, how much will she pay each month?

To determine how much Leila will pay over the 3 years, we start with the amount financed after her cash deposit. The bedroom suite costs \( R 25000 \), and after her cash deposit of \( R 5000 \), the financed amount becomes \( R 25000 - R 5000 = R 20000 \). Now, we can calculate the total interest over 3 years. The interest rate is \( 14 \% \) per annum. The total interest on the loan can be calculated using the formula: \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] Here: - Principal = \( R 20000 \) - Rate = \( 14\% = 0.14 \) - Time = \( 3 \) years So the interest is: \[ \text{Interest} = R 20000 \times 0.14 \times 3 = R 8400 \] Then, adding the principal amount: \[ \text{Total Payment} = \text{Principal} + \text{Interest} = R 20000 + R 8400 = R 28400 \] 5.2.1) Leila will pay a total of \( R 28400 \) over the 3 years, excluding the cash deposit. 5.2.2) To find out the monthly payments, we divide the total payment by the total number of months in 3 years: \[ \text{Total Months} = 3 \text{ years} \times 12 months/year = 36 \text{ months} \] Now we calculate the monthly payment: \[ \text{Monthly Payment} = \frac{\text{Total Payment}}{\text{Total Months}} = \frac{R 28400}{36} \approx R 788.89 \] Leila will pay approximately \( R 788.89 \) each month.