1.3 A couch with the value of R9800 is for sale at Coricraft. With the hire purchase option, you must pay a \( 40 \% \) deposit. The balance must be paid of over 3 years using \( 18 \% \) simple interest. 1.3.1 Calculate the deposit. 1.3.2 Calculate the hire purchase price.

To calculate the deposit, take 40% of the couch's value: Deposit = \( 40\% \times R9800 = 0.4 \times R9800 = R3920 \). Now, the remaining balance after the deposit is: Remaining balance = \( R9800 - R3920 = R5880 \). Now, calculate the interest on that balance over 3 years at 18% simple interest: Interest = Principal × Rate × Time = \( R5880 \times 0.18 \times 3 = R3176.40 \). Finally, the hire purchase price is the remaining balance plus the interest: Hire purchase price = Remaining balance + Interest = \( R5880 + R3176.40 = R9056.40 \). So, the deposit is R3920 and the hire purchase price is R9056.40!