John is planning to buy a new car and has to choose between the Toyota and the Opel.

	Toyota	Opel
Purchase price	N$ 130 000	N$ 140 000
Petrol consumption (km/l)	13,5	15,5
Cost of service	N$ 1 300	N$ 1 800

Requirement:

 Car will be bought on Hire Purchase (H.P.), repayable over 5 years at 13.5% p.a. interest

 Assume 30 000 km travelled each year.

 The Toyota is serviced every 10 000 km and the Opel every 15 000 km.

1. Find the total H.P. payments on each over the five year period.

2. Find the total petrol cost for each over five years (assume price of N$ 7.50/litre) 

3. Find the total service costs of each.                                               

4. Which car will have the smallest total cost?