Thulisile bought a house and managed to secure a home loan for R790 000 with monthly payments of R9 680,70 at a fixed interest rate of 13,75% per year, compounded monthly, over a period of 20 years.It an average yearly inflation rate of 9,2% is expected, then the real cost of the loan (the difference between the total value of the loan and the actual principal borrowed) is [1] R201 642. [2) R270 749. [3] R588 358. [4] R1 060 749. [5] R87 126.
Thulisile bought a house and managed to secure a home loan for R790 000 with monthly payments of R9 680,70 at a fixed interest rate of 13,75% per year, compounded monthly, over a period of 20 years.It an average yearly inflation rate of 9,2% is expected, then the real cost of the loan (the difference between the total value of the loan and the actual principal borrowed) is [1] R201 642. [2) R270 749. [3] R588 358. [4] R1 060 749. [5] R87 126.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Thulisile bought a house and managed to secure a home loan for R790 000 with monthly payments of
R9 680,70 at a fixed interest rate of 13,75% per year, compounded monthly, over a period of 20 years. If
an average yearly inflation rate of 9,2% is expected, then the real cost of the loan (the difference between
the total value of the loan and the actual principal borrowed) is
[1] R201 642.
[2] R270 749.
[3] R588 358.
[4] R1 060 749.
[5] R87 126.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F135e0931-8cb4-4044-8998-682c4f325edf%2Ff3ceaa3a-c8eb-434e-84ad-1d86f137c917%2Feiq2ydm_processed.png&w=3840&q=75)
Transcribed Image Text:Thulisile bought a house and managed to secure a home loan for R790 000 with monthly payments of
R9 680,70 at a fixed interest rate of 13,75% per year, compounded monthly, over a period of 20 years. If
an average yearly inflation rate of 9,2% is expected, then the real cost of the loan (the difference between
the total value of the loan and the actual principal borrowed) is
[1] R201 642.
[2] R270 749.
[3] R588 358.
[4] R1 060 749.
[5] R87 126.
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