Calculate the real cost of the loan

Reference no: EM132761621

Question: Khopotso wants to purchase a townhouse to the amount of R500 000, and made a down payment of R125 000. She manages to secure a loan at an interest rate of 13,75% per year, compounded monthly for a period of 20 years. The real cost (the difference between the total value of the loan and the actual principal borrowed) of the loan if an average inflation rate of 6,8% per year is expected and the payment per month is taken as R4 595,27, is ?

Reference no: EM132761621

Questions Cloud

Find what are fixed costs per unit associated with product x : Variable manufacturing overhead $18,000. What are the fixed costs per unit associated with Product X, knowing that the company produces 1,000 units?

What is the future value of each of the options : A friend wants to retire in 30 years when he is 65. At age 35, he can invest $400/month that earns 6% each year. But he is thinking of waiting 15 years when.

Describe changes from the prior year that should expect : Based upon this forecast, describe changes from the prior year that should expect in its return on equity, inventory turnover ratio and profit margin.

What apr monthly compounding must aaa charge : AAA Inc. wants to earn an effective annual rate of 9% on its loan. If the interest is compounded monthly, what APR monthly compounding must AAA charge?

Calculate the real cost of the loan : Khopotso wants to purchase a townhouse to the amount of R500 000, and made a down payment of R125 000. She manages to secure a loan at an interest rate.

Record the entry for the purchase of the bond : Record the entry for the purchase of the bond, the December 1 interest payment and amortization, as well as any year-end entries required.

What the annual savings for alatiris : If the firm increases its average age of inventory by 10 days and reduces its average age of receivable by 12 days, the annual savings is

Find the operating cash flow each year : A store will cost $750,000 to open. Variable costs will be 50% of sales and fixed costs are $190,000 per year. The investment costs will be depreciated.

What the amount of direct materials charged to job no : Marion allocates manufacturing overhead at a rate of 80% of direct labor cost. The amount of direct materials charged to Job No. 175 was

User Account

All Pages