Question 7 [15 A friend of yours approaches you for some financial advice regarding an outstanding property finance loan with the Landbank of R2 600 000. He tells you that he is repaying this loan with a monthly instalment of R35 000. He got the loan at a rate of 12.5 % /annum compounded monthly at the end of each month. He wants to know how much interest he will have to pay over the next six months and how much capital will still be outstanding on the loan after the next six months. 7.1) [10] Explain the principle of positive financ ia l leverage /gearing 7.2) [5] The end 61