Matthew took a loan of R820 000 ten years ago. The annual rate of interest is 9.7%
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Question:
Matthew took a loan of R820 000 ten years ago. The annual rate of interest is 9.7% per annum and the term is 20 years, of which 10 years remain. He has just inherited an amount of R200 000 and has been advised by his financial adviser to use the funds to pay towards his loan. The bank has also informed him that the interest rate on his loan increases from 9.7% to 10.5% with immediate effect (from the beginning of month 121).
If Matthew pays off R200 000 in respect of his loan, what will be his new monthly instalment on the loan for the remainder of the term ?
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
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