Ms Mohale wants to buy a computer through PC Warehouse. She can afford to pay R500 per month. PC Warehouse sells computers through hire purchase loans over 24 months with an interest rate of 15% per annum. Calculate the price of a computer that she could afford.

price of a computer that she could afford R 9230.769

Step-by-step explanation:

Given data

amount pay = R500 per month = 500 * 24 = R 12000 total pay

time period = 24 months = 24 / 12 = 2 years

rate = 15 % per annum

to find out

price of a computer that she could afford

Solution

we know formula

Amount Paid = Principal * (1 + (RT/100))

put value principal pay and R and T and we get

principal = Amount / (1 + (RT/100))

principal = 1200 / (1 + (15 * 2) / 100))

principal = 9230.769

price of a computer that she could afford R 9230.769