Question
Mr and Mrs Safehaven just saw their dream house which is valued at $4,000,000. They earn $30,000 and $25,000 per month respectively. First Abu Dhabi
Mr and Mrs Safehaven just saw their dream house which is valued at $4,000,000. They earn $30,000 and $25,000 per month respectively. First Abu Dhabi Bank is willing to offer them a rate of 5% per annum, and a maximum loan of 80% of their value of house.
(i) How long it will take the family to pay the loan if they contribute half of their monthly salary towards the monthly loan repayment?
(ii) What do you expect will happen to the value of the properties in 2021, assuming you are living in UAE? Explain your answer.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
