QU 1.1 Masakhane community purchased a UHD digital television from furniture store on hire purchase. The hire purchase agreement is shown below. ACCOUNT NUMBER, 2019 7/0034/601 COST OF CREDIT TOTAL GOODS VALUE HIRE PURCHASE AGREEMENT CREDIT AGREEMENT CUSTOMER. MASAKHANE COMMUNITY KURUNGAL LOCATION DATE OF PURCHASE TO/2019 R49 999,99 TOTAL DEFERRED AMOUNT R46 875.00 36" UHD Digital TV BROUGHT FORWARD Les depont (10 of the goods value) Add interest for 24 months at 10.75 pe araun on defened mount R10 078,13 Less discount R0.00 TOTAL DEFERRED AMOUNT R56 943.13 ADD ADDITIONAL CHARGES SUBJECT TO INTEREST ADD ADDITIONAL CHARGES NOT SUBJECT TO INTEREST Extended guarantee R1000 insurance Delivery charger R300 Total cost of credit R.14 400 R71 353.13 Imanance fee R375 TOTAL DEFERRED AMOUNT CARRIED R46 $75,00 FORWARD INSTALMENT PAYMENT Add back deposit CONTRACT TOTAL kem marked with asterisk (Face inclusive of Value Added Tan-VAT 15%) R76 353.12 Total cost of credit is payable in 23 monthly instalment of R2 973,04 commencing on 1/8/2019 and the final instalment payment of R2 973.21 Use the information above to answer the questions that follow: 1.1. 1 Define the term hire purchase in the given context. (2) 1.1.2 Calculate the deposit amount paid by Masakhane on the hire purchase agreement. (2) 1.1.3 Calculate the interest amount Masakhane pays every month. (2) 1.1.4 Explain the term 'credit' in this context. (2) 1.1.5 Determine the date (month and year) for the payment of the last instalment. (2) 1.1.6 Calculate the Value Added Tax (VAT= 15%) amount on the insurance. (3)
