1.Suppose that a client borrows a loan amount of R50,000 at annual interest rate of 10% compounded monthly. a) In order to repay the loan in 60 months, we determine that the client should pay a monthly instalment of a. R1,262.35 b. R2,000 c. None d. R1,062.35 b) If the client wants to finish paying the loan in 20 months, then the client should pay a monthly instalment of a. R1,062.35 b. R3,000 c. None d. R2,724.50

1.Suppose that a client borrows a loan amount of R50,000 at annual interest rate of 10% compounded monthly. a) In order to repay the loan in 60 months, we determine that the client should pay a monthly instalment of a. R1,262.35 b. R2,000 c. None d. R1,062.35 b) If the client wants to finish paying the loan in 20 months, then the client should pay a monthly instalment of a. R1,062.35 b. R3,000 c. None d. R2,724.50

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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