A newly wedded couple is planning to buy a two bedroom apartment in Windhoek for N$280000. He is expected to pay a 10% deposit and they can secure a bond from a local bank repayable over 24 years at 9% p.a. interest. (a) What is the total amount of money expected to be paid to the bank over the years? N$ (b) (i) What will be the couples monthly installment? N$ (ii) Calculate the monthly interest amount they will have to pay? N$ (iii) What is the monthly principal amount to be paid? (iv) what is the total interest amount to be paid at the end of the bond period?
A newly wedded couple is planning to buy a two bedroom apartment in Windhoek for N$280000. He is expected to pay a 10% deposit and they can secure a bond from a local bank repayable over 24 years at 9% p.a. interest. (a) What is the total amount of money expected to be paid to the bank over the years? N$ (b) (i) What will be the couples monthly installment? N$ (ii) Calculate the monthly interest amount they will have to pay? N$ (iii) What is the monthly principal amount to be paid? (iv) what is the total interest amount to be paid at the end of the bond period?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 2STP
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Question
Transcribed Image Text:A newly wedded couple is planning to buy a two bedroom apartment in
Windhoek for N$280000. He is expected to pay a 10% deposit and they can
secure a bond from a local bank repayable over 24 years at 9% p.a. interest. (a)
What is the total amount of money expected to be paid to the bank over the
years? N$ (b) (i) What will be the couples monthly installment? N$ (ii) Calculate
the monthly interest amount they will have to pay? N$ (iii) What is the monthly
principal amount to be paid? (iv) what is the total interest amount to be paid at
the end of the bond period?
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