Answer
Thabo's monthly instalments are R405.
Solution
To find Thabo's monthly instalments, we need to follow these steps:
1. **Calculate the total amount to be paid back**: This includes the principal amount borrowed and the total interest paid over the loan period.
2. **Calculate the monthly instalments**: Divide the total amount to be paid back by the number of months in the loan period.
### Step 1: Calculate the total amount to be paid back
- Principal amount (P): R15,000
- Annual interest (I): R1,860
- Loan period (T): 5 years
First, we calculate the total interest paid over 5 years:
\[
\text{Total Interest} = I \times T = 1860 \times 5
\]
Now, we can calculate the total amount to be paid back:
\[
\text{Total Amount} = P + \text{Total Interest}
\]
### Step 2: Calculate the monthly instalments
The total number of months in 5 years is:
\[
\text{Total Months} = 5 \times 12
\]
Now, we can find the monthly instalments:
\[
\text{Monthly Instalment} = \frac{\text{Total Amount}}{\text{Total Months}}
\]
Let's perform the calculations.
1. Calculate the total interest.
2. Calculate the total amount.
3. Calculate the monthly instalments.
I'll perform these calculations now.
Calculate the value by following steps:
- step0: Calculate:
\(5\times 12\)
- step1: Multiply the numbers:
\(60\)
Calculate or simplify the expression \( 15000 + (1860 * 5) \).
Calculate the value by following steps:
- step0: Calculate:
\(15000+\left(1860\times 5\right)\)
- step1: Multiply the numbers:
\(15000+9300\)
- step2: Add the numbers:
\(24300\)
Calculate or simplify the expression \( 1860 * 5 \).
Calculate the value by following steps:
- step0: Calculate:
\(1860\times 5\)
- step1: Multiply the numbers:
\(9300\)
Calculate or simplify the expression \( 24300 / 60 \).
Calculate the value by following steps:
- step0: Calculate:
\(\frac{24300}{60}\)
- step1: Reduce the numbers:
\(\frac{405}{1}\)
- step2: Calculate:
\(405\)
Let's summarize the calculations:
1. **Total Interest** over 5 years:
\[
\text{Total Interest} = 1860 \times 5 = R9300
\]
2. **Total Amount to be paid back**:
\[
\text{Total Amount} = 15000 + 9300 = R24300
\]
3. **Total Months** in 5 years:
\[
\text{Total Months} = 5 \times 12 = 60
\]
4. **Monthly Instalments**:
\[
\text{Monthly Instalment} = \frac{24300}{60} = R405
\]
Therefore, Thabo's monthly instalments are **R405**.
Answered by UpStudy AI and reviewed by a Professional Tutor
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