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Elise buys a house and makes a down payment of 35% of the price of the house. She manages to secure a loan at an
Elise buys a house and makes a down payment of 35% of the price of the house. She manages to secure a loan at an interest rate of 13,25% per year, compounded monthly, for a period of 20 years. Her monthly payment is R10 437,26. 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. R1 508608. 2. R1 350000. 3. R631108. 4. R877 500
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