1.1 Masakhane community purchased a UHD digital television from a furniture store on hire purchase. The hire purchase agreement is shown below. ACCOUNT NUMBER 2019 70084 601 COST OF CREDIT TOTAL GOODS VALUE $6 LHD Digital TV France HIRE PURCHASE AGREEMENT CREDIT AGREEMENT CUSTOMER MASAKHANE COMMUNITY KURUNGAI LOCATION DATE OF FURCHASE 1072019 R49 999.99 TOTAL DEFERRED AMOUNT R46 575,00 BROUGHT FORWARD Less deposit (10% of the good value) Add reset for 24 mouth: st 10.75% per amm on defered amount R10 075.15 Less discount R0.00 TOTAL DEFERRED AMOUNT R46 943.13 ADD ADDITIONAL CHARGES SUBJECT TO INTEREST ADD ADDITIONAL CHARGES NOT SUBJECT TO INTEREST Extended guarantee F1 000 Delivery charges R500 Total cost of credut R14 400 F.71 353.13 Inination fee R375 TOTAL DEFERRED AMOUNT CARRIED R46 $75,00 FORWARD INSTALMENT PAYMENT Add back deposit Items marked with asterisk (*) mehurve of Value Added Tax VAT 15%) R76 383.12 Total cost of credit is payable in 23 monthly instalment of R2 973,04 commencing on 18/2019 and the final instalment payment of R2 973.21 CONTRACT TOTAL 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)

Hire purchase is a type of credit agreement in which the buyer agrees to pay for goods in installments over a period of time. The buyer does not own the goods until the final installment has been paid.

1.1.2 Calculate the deposit amount paid by Masakhane on the hire purchase agreement.

The deposit amount is 10% of the goods value. The goods value is R49 999.99, so the deposit amount is R49 999.99 x 0.10 = R4 999.99