QUESTION 3 SA Credit Bank Mia Parker P. O. Box 472 Kensington Maitland 7405 Dear Ms Parker We know it is important to you to manage your finances responsibly. Here's an offer you would want to use. R9 000,00 Cash already approved YOUR LOAN OFFER AMOUNT ALREADY APPROVED R 9000,00 - Payable over 48 months - Monthly installments R 318,92 EXPIRY DATE: 16 January Calculate the TOTAL amount that Mia has to pay back if she takes the loan. Why, do you think, do banks and other financial institutions offer cash loans to people that did not apply for it? Which investment is the most profitable? Show al calculations. (i) R560 invested at \( 8 \% \) R560 invested at p.a. simple interest for 3 years OR (ii) \[ \begin{array}{l} \text { R } 560 \text { invested at } 7 \% \\ \text { p.a. compound } \end{array} \] (2) .2 \[ \begin{array}{l} \text { R sou compound } \\ \text { p.a. } \\ \text { interest for } 3 \text { years } \end{array} \]
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To calculate the total amount Mia has to pay back for the loan, you multiply the monthly installment by the number of months. So, R318.92 × 48 = R15,273.12. This means that the total amount to be paid back is R15,273.12. Banks often offer cash loans to individuals who haven't applied in order to attract new customers or keep existing ones. It's a way to encourage borrowers to consider their services for financial needs, promoting customer loyalty while generating revenue through interest payments. It's all about expanding the bank's client base and ensuring those customers have more financial options with them!