1. **Problem statement:** A customer buys a coffee machine with monthly instalments of R 527 for 60 months. The machine is insured at 13.8% per annum based on the cash price of R 22,267.61. We need to calculate: 1) The total insurance amount over 60 months. 2) The monthly insurance amount. 3) The new monthly instalment including insurance. 2. **Calculate total insurance (simple interest) over 60 months:** The formula for simple interest is: $$I = P \times r \times t$$ where $P = 22,267.61$ (principal or cash price) $r = 13.8\% = 0.138$ per annum $t = \frac{60}{12} = 5$ years (60 months converted to years) Substitute values: $$I = 22,267.61 \times 0.138 \times 5$$ $$I = 22,267.61 \times 0.69 = 15,360.66$$ So, total insurance over 60 months is **R 15,360.66**. 3. **Calculate monthly insurance amount:** Monthly insurance = Total insurance $\div$ Number of months $$ = 15,360.66 \div 60 = 256.01$$ So, monthly insurance amount is **R 256.01**. 4. **Calculate new monthly instalment including insurance:** Original monthly instalment = R 527 New monthly instalment = Original instalment + Monthly insurance $$= 527 + 256.01 = 783.01$$ So, the new monthly instalment including insurance is **R 783.01**. **Final answers:** 1. R 15,360.66 2. R 256.01 3. R 783.01