i) Monthly interest rate = 24%/12 =2% = 0.02

Monthly payment (A) is given by

A/0.02*(1-1/1.02^60) = 50000

=> 34.76088 *A = 50000

=> A = R1438.40

So, monthly payment will be R1438.40

ii) Total amount paid in 5 years = 1438.40*60 = R86303.90

So, Interest paid = 86303.90 - 50000 = R 36303.90

iii) If loan has a residual of 20% , 20% is recovered after 5 years i.e. R10000 is recovered after 5 years

So,

A/0.02*(1-1/1.02^60) + 10000/1.02^60 = 50000

=> 34.76088 *A = 46952.18

=> A = R1350.72

So, monthly payment will be R1350.72

iv)

Total amount paid in 5 years = 1350.72*60 = R81043.12

So, Interest paid = 81043.12- 50000 = R 31043.12

v) The present value of a growing annuity is given by

PV = A/i*(1-1/(1+i)^n) + D* ((1+i)^n-ni-1)/(1+i)^n*i^2)

So, monthly payment (A) is given by

A/0.02*(1-1/1.02^60) + 50*(1.02^60-60*0.02-1)/(1.02^60*0.02^2) = 50000

=> 34.76088*A +41184.88 = 50000

=> A = R253.59

Initial payment in month 1 = R253.59

Please see above assistance for Part A. I need assistance with Part B.

Part A Use the information below to answer the questions that follow: You have been granted a loan of R50 000 payable monthly over a 5-year term. The interest rate charged is 24% per annum compounded monthly. You are required to determine: Part B On the day the loan is granted, you receive news that you have been accepted for a graduate program at Goldman Sachs in New York. This is an opportunity (of a lifetime) you cannot miss so you decide to structure a payment plan that skips the second year of loan payments but pays double the initial payment for the remaining term. vi. vii. viii. Draw a time line that shows this payment plan. [1] Determine the initial payment to pay off the loan that incorporates the skipped payments. [4] What is the total interest paid for the loan using this payment re? [3] Using total interest paid as your barometer, determine which of the payment plans above will work best for you and why. [2] 1x. Part A Use the information below to answer the questions that follow: You have been granted a loan of R50 000 payable monthly over a 5-year term. The interest rate charged is 24% per annum compounded monthly. You are required to determine: Part B On the day the loan is granted, you receive news that you have been accepted for a graduate program at Goldman Sachs in New York. This is an opportunity (of a lifetime) you cannot miss so you decide to structure a payment plan that skips the second year of loan payments but pays double the initial payment for the remaining term. vi. vii. viii. Draw a time line that shows this payment plan. [1] Determine the initial payment to pay off the loan that incorporates the skipped payments. [4] What is the total interest paid for the loan using this payment re? [3] Using total interest paid as your barometer, determine which of the payment plans above will work best for you and why. [2] 1x