14. Gabriel buys a van that costs R 840 000. He pays a 20% deposit and takes a loan to repay theremainder. The terms of the loan are as follows:Interest rate: 12% per annum compounded monthly.Duration: 7 years.What is Gabriel's monthly instalments to pay off the loan?A. R 10 843.77B. R 14 840.98(4)C.R 11 862.64D. R 12 376.92

A mortgage payment is a periodic amount paid to a mortgage holder for repayment of a mortgage loan.…

Answered: 14. Gabriel buys a van that costs R 840…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 19PROB

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Question

14. Gabriel buys a van that costs R 840 000. He pays a 20% deposit and takes a loan to repay the
remainder. The terms of the loan are as follows:
Interest rate: 12% per annum compounded monthly.
Duration: 7 years.
What is Gabriel's monthly instalments to pay off the loan?
A. R 10 843.77
B. R 14 840.98
(4)
C.
R 11 862.64
D. R 12 376.92

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