Question

Abusiswe loans R78 500 from a bank to buy a car. She agrees to repay the amount with interest in equal monthly instalments. The bank adds simple interest at a rate of \( 7.5 \% \) over 3 years to the amount. Calculate the following: 4.1 the total amount Abusiswe has to pay 4.2 the monthly instalments she has to pay

Ask by Hammond Flynn. in South Africa
Mar 13,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

Abusiswe has to pay a total of R96,162.50 and her monthly instalments are approximately R2,671.18.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Bonus Knowledge

To calculate the total amount Abusiswe has to pay, we first need to find the interest charged on the loan. The formula for simple interest is: \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] Plugging in the values: - Principal = R78,500 - Rate = 7.5% (or 0.075) - Time = 3 years \[ \text{Interest} = R78,500 \times 0.075 \times 3 = R17,662.50 \] Now, we can find the total amount: \[ \text{Total Amount} = \text{Principal} + \text{Interest} = R78,500 + R17,662.50 = R96,162.50 \] For the monthly instalments, we divide the total amount by the number of months in 3 years (which is 36 months): \[ \text{Monthly Instalment} = \frac{\text{Total Amount}}{\text{Number of Months}} = \frac{R96,162.50}{36} \approx R2,671.19 \] 4.1 The total amount Abusiswe has to pay is R96,162.50. 4.2 The monthly instalments she has to pay are approximately R2,671.19.

Related Questions

Latest Arithmetic Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy