A citrus farmer needs to update her farming equipment and has decided to purchase a new tractor. She negotiates a loan of R580 000 from a local bank with a fixed interest rate of 11.49% per annum compounded monthly. The farmer plans to repay the loan in equal, monthly installments starting exactly one year after securing the loan. The farmer and bank agree that the period of the debt is exactly eight years after securing the loan. Hint: Draw a time diagram when attempting this problem! Mark allocation (1, 2, 3, 4) 1 The number of equal, monthly repayments to be made is: OB 07 O 85 O 84 096 The value of the loan one month before the first installment is due is: O R634 408.00 O R580 000.00 O R643 572.61 O R629 685.36 O R729 685.36 The value of the monthly repayments that are to be made to settle the debt is: O R11 069.45 O R10 045.42 O R11 261.33 O R9 236.49 O R10 207.04