Cyril buys a house and makes a down payment of 35% of the price of the house. He manages to secure a loan at an interest rate of 13,25% per year, compounded monthly, for a period of 20 years. His monthly payment is R10 437,26.

Question 11.1 The size of the loan (to the nearest rand) is

[1] R869 941.

[2] R1 508 454.

[3] R1 020 091.

[4] R877 500.

[5] R2 504 942.

Question 11.2 The size of the down payment (to the nearest rand) is

[1] R307 125.

[2] R472 500.

[3] R527 959.

[4] R570 375.

[5] R876 730.

Question 11.3 If an average yearly inflation rate of 5,57% is expected, then the real cost (the difference between the total value of the loan and the actual principal borrowed) of the loan (to the nearest rand) is

[1] R631 108.

[2] R877 500.

[3] R1 350 000.

[4] R1 508 608.

[5] none of the above.