QUESTION 3

Dario wants to buy a new washing machine for the business. The following three machines were on sale:

\begin{tabular}{|c|c|c|c|}
\hline
- & \begin{tabular}{c}
TOP \\
LOADER
\end{tabular} & \begin{tabular}{c}
FRONT \\
LOADER
\end{tabular} & TWIN TUB \\
\hline
Washing load & 8 kg & 7 kg & 13 kg \\
\hline
Guarantee in months & 24 & 24 & 24 \\
\hline
Normal price & R2 199 & R4 299 & R2 399 \\
\hline
Sale price & R1 999 & R3 099 & R2 299 \\
\hline
\begin{tabular}{c}
On account \\
(Hire Purchase)
\end{tabular} & R111 [tex]$\times$[/tex] 36 months & R195 [tex]$\times$[/tex] 24 months & R126 [tex]$\times$[/tex] 36 months \\
\hline
\end{tabular}

3.1.1. If Dario had R5 000 to buy a washing machine, which one would you advise him to buy? Give reasons for your answer.

3.1.2. If Dario chooses to buy a Twin Tub washing machine on hire purchase, how much would he pay at the end of 36 months?

3.2.3. Determine how much Dario would save if he buys the Front Loader machine for cash at the sale price instead of on account (hire purchase).

3.2.4. Dario sold his machine for R1 500. Two years ago, he paid R2 300 for it. Determine the percentage decrease in the value of the old washing machine. (Round off to the nearest whole number)

[tex]\[
\text{Percentage decrease} = \frac{\text{original amount} - \text{new amount}}{\text{original amount}} \times 100
\][/tex]



Answer :

Certainly, let's go through each part of the problem step by step:

### 3.1.1. If Dario had R5 000 to buy a washing machine, would you advise him to buy? Give reasons for your answer.

Given that Dario has R5,000, we need to compare this amount with the sale prices of the washing machines:

- Top Loader: R1,999
- Front Loader: R3,099
- Twin Tub: R2,299

All the sale prices of the washing machines are within Dario's budget of R5,000. Therefore, I would advise Dario to buy because he can easily afford any of the three washing machines within his budget.

Advice Given: Yes

Reason: Dario can buy any of the washing machines as all are within his budget of R5,000.

### 3.1.2. If Dario chooses to buy a Twin Tub washing machine on hire purchase, how much would he pay at the end of 36 months?

For the Twin Tub washing machine, the hire purchase cost is R126 per month for 36 months.

The total amount paid on hire purchase is:
[tex]\[ 126 \text{ ZAR/month} \times 36 \text{ months} = 4536 \text{ ZAR} \][/tex]

So, Dario would pay R4,536 by the end of 36 months.

### 3.2.3. Determine how much Dario would save if he buys the Front Loader machine for cash on the sale price instead of on an account (hire purchase).

First, calculate the total cost on hire purchase for the Front Loader:
[tex]\[ 195 \text{ ZAR/month} \times 24 \text{ months} = 4680 \text{ ZAR} \][/tex]

Next, subtract the sale price of the Front Loader from the total hire purchase amount:
[tex]\[ 4680 \text{ ZAR} - 3099 \text{ ZAR} = 1581 \text{ ZAR} \][/tex]

Therefore, Dario would save R1,581 if he buys the Front Loader for cash instead of on an account (hire purchase).

### 3.2.4. Dario sold his machine for R1 500. Two years ago he paid R2 300 for it. Determine the percentage decrease in the value of the old washing machine. (Round off to the whole number)

First, calculate the decrease in price:
[tex]\[ 2300 \text{ ZAR} - 1500 \text{ ZAR} = 800 \text{ ZAR} \][/tex]

Then, calculate the percentage decrease:
[tex]\[ \frac{800 \text{ ZAR}}{2300 \text{ ZAR}} \times 100 = 34.78\% \][/tex]

Rounding to the nearest whole number, the percentage decrease is approximately 35%.

So, summarizing the results:

1. 3.1.1 - Yes, because Dario can buy any of the washing machines within his budget of R5,000.
2. 3.1.2 - R4,536 is what Dario would pay at the end of 36 months for the Twin Tub washing machine on hire purchase.
3. 3.2.3 - Dario would save R1,581 if he buys the Front Loader for cash instead of on an account.
4. 3.2.4 - The percentage decrease in the value of the old washing machine is 35%.