6
Sara opens an account at a clothing store to buy clothes worth R1 800. The shop
charges 15% Interest per annum.
6.1 How much she pays after the interest is added?
6.2 How much would she pay per month to pay it off in one year?
(3)
(2)
1.6.3 How much would she have saved if she had taken a loan from the bank that
charges 14% interest per annum?
1.6.4 If she paid a deposit of R600, how much she should pay per month over 6
months period?
(3)
(3)



Answer :

Answer:

Let's break down each part of the question and solve them step by step.

### 6.1 Total Amount After Interest

Sara buys clothes worth R1,800 with an interest rate of 15% per annum.

The formula for the total amount after interest is:

\[ \text{Total Amount} = \text{Principal} \times (1 + \text{Interest Rate}) \]

\[ \text{Total Amount} = R1,800 \times (1 + 0.15) \]

\[ \text{Total Amount} = R1,800 \times 1.15 \]

\[ \text{Total Amount} = R2,070 \]

So, Sara will pay R2,070 after interest is added.

### 6.2 Monthly Payment to Pay Off in One Year

To find out how much Sara needs to pay per month, we divide the total amount by 12 months.

\[ \text{Monthly Payment} = \frac{\text{Total Amount}}{12} \]

\[ \text{Monthly Payment} = \frac{R2,070}{12} \]

\[ \text{Monthly Payment} = R172.50 \]

So, Sara will pay R172.50 per month to pay off the amount in one year.

### 6.3 Savings with a Bank Loan at 14% Interest

First, calculate the total amount she would pay with a 14% interest rate.

\[ \text{Total Amount with Bank Loan} = \text{Principal} \times (1 + \text{Interest Rate}) \]

\[ \text{Total Amount with Bank Loan} = R1,800 \times (1 + 0.14) \]

\[ \text{Total Amount with Bank Loan} = R1,800 \times 1.14 \]

\[ \text{Total Amount with Bank Loan} = R2,052 \]

Now, find the difference between the total amount paid at the store and the total amount paid with the bank loan.

\[ \text{Savings} = \text{Total Amount at Store} - \text{Total Amount with Bank Loan} \]

\[ \text{Savings} = R2,070 - R2,052 \]

\[ \text{Savings} = R18 \]

Sara would save R18 if she had taken a loan from the bank that charges 14% interest per annum.

### 6.4 Monthly Payment Over 6 Months with a Deposit of R600

First, subtract the deposit from the total amount owed after interest to find the remaining balance.

\[ \text{Remaining Balance} = \text{Total Amount} - \text{Deposit} \]

\[ \text{Remaining Balance} = R2,070 - R600 \]

\[ \text{Remaining Balance} = R1,470 \]

Now, divide the remaining balance by 6 months to find the monthly payment.

\[ \text{Monthly Payment} = \frac{\text{Remaining Balance}}{6} \]

\[ \text{Monthly Payment} = \frac{R1,470}{6} \]

\[ \text{Monthly Payment} = R245 \]

So, Sara should pay R245 per month over a 6-month period after paying a deposit of R600.