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
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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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 |
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