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
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
Related questions
Question
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 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
PFIN (with PFIN Online, 1 term (6 months) Printed…
Finance
ISBN:
9781337117005
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
PFIN (with PFIN Online, 1 term (6 months) Printed…
Finance
ISBN:
9781337117005
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning