10.1 Purchasing a vehicle

Youve seen the following price list and have decided to purchase the Supervan

VEHICLE	RETAIL	Instalment sale. 54 months. 10% deposit	Straight lease 60 months	Lease (60 months). No deposit. 30% residual	Lease (60 months). 60 000 km maintenance plan. No deposit. No residual
Extravan	R60270	R1299pm	R1359pm	R1167pm	R1469pm
Supervan	R105400	R2249pm	R2329pm	R1989pm	R2449pm
Luxavan	R130710	R2789pm	R2889pm	R2465pm	R2999pm
Incredivan	R186300	R3939pm	R4089pm	R3485pm	R4239pm
Dreamvan	R193940	R4119pm	R4269pm	R3635pm	R4399pm

Subject to Bank approval. Terms and conditions apply. All prices include VAT.

• Calculate the total cost of the vehicle for each of the four finance options.
• Calculate the interest paid in Rands on each of the four options.
• Calculate the interest percentage for all four options.

(Do your calculations on a separate page from the Workbook and enter the answers in the table on the next page.)

Option	Total paid	Retail price	Interest in R	Interest %
1
2
3
4

10.2 Choose a finance option and say why you have chosen that particular option:

I choose Option , because

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10.3 Your home loan is one of your most dramatic examples of the effect of compound interest over time. How much do you pay in total over 20 years for your R450 000 home if your monthly repayment stays at R4 500?

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10.4 If you were to increase your monthly repayment by 25%, you would pay your bond off in 125 months. Calculate what you would pay (and save) in total:

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