Sipho urgently needs to buy a motorbike to get to work. He sees a great deal at a motorcycle dealership in town, a bike advertised at R55 000. However, he has only saved R21 000. The floor manager makes a deal with him: She offers Sipho a hire purchase deal where he pays the R21 000 as a cash deposit and then pays monthly instalments of R1 285 for the next three years.
(a) What is the total amount of interest Sipho pays?
(b) What is the annual percentage interest he is paying?
(c) Do you think the floor manager gave him a good deal?