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Will able to afford the new payment

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Francois and Suzan are just married amd want to buy a house . They can afford a monthly payment of R6000. The bank can offer them a home loan at 16% p.a. compounded montly over a period of 25 years ..

Question 1: What is the maximum loan that they affor

Question 2: interest rates are always increasing. They decide to obtain a home loan for R420000. Will they able to afford the new payment if inrerest rate increases by 2%%?

Reference no: EM132622526

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