Please advice on how the following amount was calculated: Item purchase on deferred purchase. 5 annual payments of R250. (The rate of interest is 10% p.a. and the present value of R1 for 5 years at 10% is 3,790 787) calculate the annual interest and capital. show working of how the interest was calculate and the capital.

Purchase Price: R250x5=R1250 which is 90% of the purchase price, since 10% a deposit of 10% is payable

Purchase Price: R1250 + R138.89 = R1388.89

Cash price: The purchase price is R 1388.89 - R138.89 = R1250