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QUESTION TWO [20] 2.1 Janine borrows R 100 000 from her bank to start a small clothing business. The bank chargers an annual interest rate
QUESTION TWO [20] 2.1 Janine borrows R 100 000 from her bank to start a small clothing business. The bank chargers an annual interest rate of 10% per annum over 7 years. Calculate the size of the annual payment and prepare an amortization schedule for the borrowed amount. (You (14) should round the payments up to three decimal places). 2.2 Michael is a budding pilot who borrows R 40 000 from a financial institution to take flying lessons. He will be charged at a rate of 5% per annum compounded quarterly over six years. What repayments will Michael have to make every three months? (6)
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