Question four
[total 25 marks]
(a) george is buying a house for n$850.000. he has to pay a...
Mathematics, 10.07.2019 04:30 462nolan
Question four
[total 25 marks]
(a) george is buying a house for n$850.000. he has to pay a 10% deposit and can secure a bond
from his bank repayable over 25 years at 12% p. a. interest.
(1) whai is his monthly instalment?
(3 marks)
(1) another bank is now giving him two other options i. e. to increase the payback period to 30
years or to reduce the rate by 1.5% p. a. find the monthly instalment for each option
(1) 30 year payback period
(4 marks)
(2) reduced interest rate
(4marks)
(u) how much money will he save per month using the cheapest option? (4 marks)
Answers: 2
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