NSC Mathematical Literacy Representing, interpreting and analysing data: Mrs Smith would like to buy a ca

Question

Mrs Smith would like to buy a car but does not have the full cash amount. She downloaded TWO payment options for TWO different cars as shown in TABLE 2 below.

TABLE 2: PAYMENT OPTIONS FOR TWO DIFFERENT CARS

ITEM			FORD FIGO		VW POLO
Retail price/Cash price (including VAT)	R215 100		R220 300
Deposit		5%		0%
Monthly instalment	R2 999,00		R3 345,00
Residual value	R69 000		R116 759
Monthly admin fee (not included in monthly instalment)	R69,00		2,08% of the monthly instalment
Term agreement	72 months		48 months
VAT		15%		15%
*Residual value is the last month's payment.

Use TABLE 2 above to answer the questions that follow.

2.1.1 State what type of payment option is shown in TABLE 2.
2.1.2 Calculate the deposit amount for the Ford Figo.
2.1.3 Write down (in simplified form) the rate of the term agreement of the Ford Figo to the VW Polo.
2.1.4 Which ONE of the two vehicles will be more cost effective in terms of monthly budget?
2.1.5 Calculate the total cost of the VW Polo if the monthly instalment remained the same throughout the contract period, except for the final payment.
2.1.6 Mrs Smith invested R60 000 at a bank for two years with compound interest. In the first year she received an interest rate of 4,3% per annum while in the second year the interest rate was 5,1% per annum.

Mrs Smith stated that she would have enough money at the end of the second year to pay the residual value of the Ford Figo.

Verify, showing ALL calculations, whether her statement is CORRECT.

Mrs Smith would like to buy a car but does not have the full cash amount - NSC Mathematical Literacy - Question 2 - 2021 - Paper 1

Worked Solution & Example Answer:Mrs Smith would like to buy a car but does not have the full cash amount - NSC Mathematical Literacy - Question 2 - 2021 - Paper 1

State what type of payment option is shown in TABLE 2.

Calculate the deposit amount for the Ford Figo.

Write down (in simplified form) the rate of the term agreement of the Ford Figo to the VW Polo.

Which ONE of the two vehicles will be more cost effective in terms of monthly budget?

Calculate the total cost of the VW Polo if the monthly instalment remained the same throughout the contract period, except for the final payment.

Verify, showing ALL calculations, whether her statement is CORRECT.

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