ESTION 4 A bicycle is marked for R2790,59. The store offers a cash discount of \( 15 \% \). On a hire purchase you pay \( 20 \% \) deposit. The store adds R320 to the outstanding balance as finance cost. Calculate: 4.1 The total amount a customer will pay on a hire purchase over 6 months. (3)

1. Calculate the 20% deposit on the marked price: \[ \text{Deposit} = 0.20 \times 2790.59 = 558.12 \] 2. Determine the outstanding balance after the deposit: \[ \text{Outstanding Balance} = 2790.59 - 558.12 = 2232.47 \] 3. Add the finance cost of R320 to the outstanding balance: \[ \text{Financed Amount} = 2232.47 + 320 = 2552.47 \] 4. The total amount paid on the hire purchase is the sum of the deposit and the financed amount: \[ \text{Total Amount} = 558.12 + 2552.47 = 3110.59 \] Thus, the customer will pay a total of R3110.59 over 6 months.