Mr Hassiem buys a computer for his business one of the computer is-R8 999 and he pays a deposit of R1 500. The simple interest rate is \( 7 \% \) p.a. Calculate his monthly instalment if the hire purchase agreement says that he must pay back the money in 3 years' time.

To calculate Mr. Hassiem's monthly instalment, we first need to find out how much he will need to finance after the deposit. The total cost of the computer is R8,999, and with a deposit of R1,500, the balance to be financed is R8,999 - R1,500 = R7,499. Since the hire purchase agreement has an interest rate of 7% per annum and the repayment period is 3 years (or 36 months), we can calculate the simple interest on the financed amount: Simple Interest = Principal × Rate × Time = R7,499 × 0.07 × 3 = R1,574.73 Now, we add the interest to the principal to get the total amount to be paid back: Total amount = Principal + Simple Interest = R7,499 + R1,574.73 = R9,073.73 Finally, to find the monthly instalment, we divide the total amount by the number of months: Monthly Instalment = Total Amount / Number of Months = R9,073.73 / 36 ≈ R252.04 Therefore, Mr. Hassiem’s monthly instalment will be approximately R252.04.