Khopotso wants to purchase a townhouse to the amount of R500 000, and made a down payment of R125 000. She manages to secure a loan at an interest rate of 13,75% per year, compounded monthly for a period of 20 years. The real cost (the difference between the total value of the loan and the actual principal borrowed) of the loan if an average inflation rate of 6,8% per year is expected and the payment per month is taken as R4 595,27, is

• A.

  R601 995,55.

• B.

  R305 661,17.

• C.

  R101 995,55.

• D.

  R307 422,51.

• E.

  R226 995,55.