5. Melissa takes a loan of R950 000 to buy a house. The interest is 14.25% p.a.
compounded monthly. His first instalment will commence one month after taking out the
loan.
5.1 Calculate the monthly repayments over a period of 20 years (4)
5.2 Determine the balance on the loan after the 100th instalment (4)
5.3 If Melissa failed to pay the 101st, 102nd, 103rd and 104th instalments, calculate the
value of the new instalment that will settle the loan in the same time period. (4)
6. Tshepo takes out a home loan over 20 years to buy a house that costs R1 500 000
6.1 Calculate the monthly instalment if interest is charged at 10,5% p.a, compounded
monthly. (4)
6.2 Calculate the outstanding balance immediately after the 144th payment was made.
(5)
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