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please help me with number one and 2 QUESTION 1 Nedbank has bought an old residential house for R2,000,000 near Davenport Square (Shopping Centre) in
please help me with number one and 2
QUESTION 1 Nedbank has bought an old residential house for R2,000,000 near Davenport Square (Shopping Centre) in Durban to be converted into Nedbank Glenwood Branch. The bank intends to convert the house into a fully serviced branch after 2 years. It is estimated that this maintenance work will cost Nedbank R1,000,000. What amount will Nedbank have to invest monthly at the beginning at 11% interest rate per annum to have R1,000,000 available in cash at the end of 2 years. (10 marks) QUESTION 2 Mr Brian Morgan bought a house for R1,500,000 and obtained a bond of 75% of the purchase price over a term of 20 years at 11% per annum. After 7 years the man inherits R100,000. He decides to pay off on the bond and requests the holder of the bond to adjust the monthly Instalments for the remainder of the term of the bond. Calculate the monthly instalment that he has to pay thereafter. (20 marks)Step by Step Solution
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