QUESTION 3: TIME VALUE OF MONEY (15 Marks) Scenario: To rent or buy a property Joan recently graduated with a Bachelor of Business Management from the Namibia University of Science and Technology (NUST). She is fortunate to have landed a job two months after graduation. Her take home remuneration (after-Tax and deductions) will be N\$\$15, 120 . A search on the housing markets indicates that she could either rent a nice two-bedroom flat for N$7,000 per month or buy three bedroom town house close to her new work place. One of the townhouses is on the market for a price of N$700,000. Her parents are prepared to assist her by paying N$73,000 plus the transfer fees of N$17,000, leaving her to borrow the balance of N$610,000. The interest rate on the mortgage bond is currently 11.50% per annum and the loan period is 20 years. a) How much will the monthly installments be apart from the monthly levy of N$1,300. (10 marks) b) Should Joan rent the flat for N$7,000 per month or rather buy a townhouse? Motivate your recommendation. (5 Marks). NOTE: please show ALL detailed calculations as marks will be allocated accordingly