You have purchased a pre-owned motor vehicle in terms of a suspensive sales agreement. You are

required to pay monthly instalments from today, 1 June, 2x01 to 1 May 2x06. The cash price of the

car is R128 496.00. Finance charges are linked to the prime overdraft rate; the rate is prime plus a

premium of 1% per annum. The prime rate is currently 8% per annum, interest compounded monthly.

Required:

(a) Determine the equal monthly instalment amount required to purchase the motor vehicle

over five years.