TASK 3 A tractor is purchased and can be financed by means of a medium term loan, an instalment sale agreement and a hire 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 Applicable information Cost price of tractor 1 500 000 (30) Deposit payable 20% 15 TASK 3 A tractor is purchased and can be financed by means of a medium term loan, an instalment sale agreement and a hire 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. Applicable information Cost price of tractor Deposit payable Interest rate Life span Financing period 1 500 000 20% 12% 5 years 5 years (30) Page 7 of 10