Question
A person borrows $100,000 for purchasing a house which is to be repaid in the form of a level annuity at 6% pa over 20
- A person borrows $100,000 for purchasing a house which is to be repaid in the form of a level annuity at 6% pa over 20 years.
- calculate the annual annuity amount to be repaid.
Assume that the person has the option of only paying the interest during the 20 years and the capital becomes only payable at time 20. The person also has an attractive investment option offered to him and can earn 10% on any money he invests as long as he invests the same amount each year in this investment.
- How much does he invest in the investment vehicle assuming he wishes to repay his loan at time 20 assuming he chooses this option.
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Authors: G. R. Tiberius
1st Edition
B099TLJRT2, 979-8541466690
