Grade 12 Financial Mathematic
n-up Q:
Austin buys a house for R 1 785 000 on the 1st September 2021. The bank gives him an interest rate of
6% p.a. compounded monthly. Mr Austin makes payments of R11 000 at the end of each month.
a) What is the balance on the loan on the 31st December 2036?
b) How long will it take Mr Austin to payoff the loan?