Question 1194189
**a) Total Amount of Money Expected to be Paid to the Hire Purchase Company**

* **Calculate Total Repayment Period in Months:** 
   - 3 years * 12 months/year + 10 months = 46 months

* **Calculate Total Interest:**
   - **Annual Interest:** N$75,000 * 11% = N$8,250
   - **Total Interest (Approximate):** N$8,250 * (46/12) = N$31,625 

* **Total Amount to be Paid:**
   - Car Price + Total Interest = N$75,000 + N$31,625 = N$106,625

**b) Monthly Installment**

* **Monthly Installment:** Total Amount to be Paid / Number of Months 
   - N$106,625 / 46 = N$2,318.37 (approximately)

**c) Bank 1 Calculations**

* **(i) Total Amount of Money Expected to be Received by Bank 1:**
    - This would be the same as the car price: N$75,000

* **(ii) Monthly Installment to Bank 1:**
    - This requires using a loan amortization formula or a financial calculator. 
    - **Note:** The exact formula and its application may vary slightly depending on the specific compounding method used by the bank. 
    - **General Approach:** 
        - Use the loan amortization formula to calculate the monthly payment based on the loan amount (N$75,000), interest rate (11% p.a.), and loan term (46 months).

* **(iii) Total Amount of Money Expected to be Received by Bank 2:**
    - Same as Bank 1: N$75,000

**c) Bank 2 Calculations**

* **(iv) Monthly Installment to Bank 2:**
    - Use the loan amortization formula with the reduced interest rate (11% - 1.5% = 9.5% p.a.), loan amount (N$75,000), and loan term (46 months).

**c) (v) Savings per Month**

* **Calculate the difference in monthly installments:**
    - Monthly Installment to Bank 1 - Monthly Installment to Bank 2 

**Important Notes:**

* **Loan Amortization Formula:** This formula calculates the equal periodic payment required to pay off a loan over a specific term. It considers the principal amount, interest rate, and number of periods. 
* **Financial Calculators:** Many financial calculators (or online calculators) can directly compute loan payments based on the given inputs.
* **Rounding:** Ensure proper rounding throughout the calculations to avoid significant discrepancies in the final results.

**Disclaimer:** This information is for general guidance only and may not constitute financial advice. It's crucial to consult with a financial professional for personalized and accurate calculations based on your specific circumstances and the terms and conditions of the loan agreements.