Question: Task 2 A tractor is purchased over a 6 year period and can be financed by means of an instalment sale agreement and a hire/lease

Task 2 A tractor is purchased over a 6 year period

Task 2 A tractor is purchased over a 6 year period and can be financed by means of an instalment sale agreement and a hire/lease purchase agreement. Determine the: 1) annual instalment 2) financing costs and 2) the total cost of the tractor for each of the methods of financing. (15) Applicable information Cost price of tractor Deposit payable Interest rate R1 680 000 25% 12%

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