You are buying a flat for R1 million. You don't have a deposit, and obtain a 100% bond to be paid off in equal monthly payments over the next 20 years. The bank charges you interest at an effective monthly rate of 0.75%. You also need to pay a bond admin fee of R75 per month. (Note: the bank calculates the interest daily, and you repay the bond in equal monthly payments over the 20 years.) 

What is percentage of the bond repayment (excluding the admin fee) that goes towards capital repayment in the last month (month 240)?

Answer rating: 100% (QA)

To determine the percentage of the bond repayment that goes towards capital repayment in the last mo... View the full answer