1.2
Hugo bought a property for R1 700 000. He took out a loan for the property
at 9,2% interest p.a. compounded monthly over 20 years and must pay 10%
deposit immediatly. He begins repaying the loan in 1 month's time.
1.2.1 How much deposit must he pay?
1.2.2 How much does hy owe the bank directly after he paid the deposit?
1.2.3 What will his monthly payments be?
1.2.4 Hugo experiences financial difficulties and after 7 years he skips 7
consecutive payments.
a.
b.
What is the balance outstanding on the loan after 7 years?
What will the balance on the loan be once he can begin making payments
again?
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