Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please, I need help with this. Thanks QUESTION 2 The business where Daniel had worked for the past 12 years, closed down. He found it

image text in transcribed

image text in transcribed

please, I need help with this. Thanks

QUESTION 2 The business where Daniel had worked for the past 12 years, closed down. He found it very difficult to find new employment and decided to investigate the possibility of starting a garden service. After finding out all he needed to, he sat down and drew up the following start-up and monthly cost budget sheet. Start-up Costs Monthly Operating Costs Amount (R) Amount (R) 11 000 4 x Labourers 14 000 1 x Second-hand trailer 2 x Lawn mowers 7 200 Petrol 1 200 3 x Spades 360 480 3 x Rakes 327 4 x pairs gloves per month 2 x pairs safety glasses per month. 120 3 x Garden forks 360 300 Advertising costs per month Internet 1 x Weed eater 1 850 650 2 x Grass brooms 160 Total R21 257 Total R16 750 If all his labourers earned the same wage, how much did they each earn per week? Take that they work 5 days per week and 20 days per month. Give your answer correct to the nearest five Rand. (5) 2.2 Daniel needed to buy the items for his start-up requirement, on hire purchase. On this R21 257, he had to pay interest of 16,5% per annum and repay the full amount over two years. Determine his monthly repayment. 2.3 Daniel was also looking into buying a house he liked which was selling for one million one hundred thousand Rand. He requested the bank to calculate his monthly repayment over a period of 25 years. 2.3.1 The bank offered him a loan, but had to pay a deposit of 1,25%. Calculate the how much deposit he should pay in order to buy the house. 2.3.2 Hence calculate his loan amount after paying the deposit. 2.3.3 The table below shows the factor values for two loan periods: Loan Interest Rates Period 13% 11% 11,5% 12,0 12,5 % % 11.01 11.36 Factor 10,32 10,66 11,71 Factor 9,8 10.17 10,53 10,9 11,28 20 years 25 years (5) (3) (2) 2.3.3.1 The bank offered him a loan at 13% interest for over 25 years. Calculate Daniel's monthly repayment. You may use the following formula: (3) Loan amount Monthly Repayment = x loan factor 1000 [18]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions