You take a R3.5 million loan from a bank to purchase a new house. The stated...
You take a R3.5 million loan from a bank to purchase a new house. The stated rate quoted by your bank is 3.5% compounded monthly. How long would it take you to pay off the loan if the company plans on a R16,000 monthly installment schedule?
Homework Answers
Loan Amount = $3,500,000
Monthly payment = $16,000
Interest Rate = 3.5%
Calculating Time Period,
Using TVM Calculation,
N = [PV = 3,500,000, FV = 0, PMT = -16,000, I = 0.035/12]
N = 348.91 months
Time Period = 348.91 momths
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