Question $3$

$1\mathrm{.}1$

Mr$.$ Vundla wants to purchase a new lounge suite. He goes to a local furniture shop and the sales person shows him the lounge suite on the picture below.

Rova PCE Wetnollanea tookloure sume

WAS R$15999$

NOW R$14999$

Hire $-$ Purchase

Options:

Deposit $15\%$ of the new purchase price.

R $759,6424$ months

Total Cost$=Rq,$

$3\mathrm{.}1\mathrm{.}1$ Explain the meaning of interest rate according to the given context

$(2)$

$3\mathrm{.}1\mathrm{.}2$ Calculate the discount amount.

$(2)$

$3\mathrm{.}1\mathrm{.}3$ Calculate the percentage discount $($rounded to one decimal place$),$ using the following formula:

Percentage discount $=\frac{\text{d}\text{i}\text{s}\text{c}\text{o}\text{u}\text{n}\text{t}}{\text{o}\text{l}\text{d}\text{p}\text{r}\text{i}\text{c}\text{e}}100\%$

$3\mathrm{.}1\mathrm{.}4$ Calculate the deposit on the lounge suite if the hire$-$purchase option is used.

$(3)$

$3\mathrm{.}2.$ Mr Vundla does not have the cash and decided to go to Bank $x$ to make a personal loan of R$15000.$ The Bank offers him $15\%$ interest compounded annually.

Mr Vundla claim that he will pay R $19837,50$ after $24$ years. Venfy if his ciaim is

$(5)$ correct.

$[15]$