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TASK 3 A Gross production value 986 000 1 685 000 Production marketing & admin costs 560 000 1 100 000 Cost of living 130
TASK 3 A Gross production value 986 000 1 685 000 Production marketing & admin costs 560 000 1 100 000 Cost of living 130 000 180 000 Additional capital required 150 000 200 000 Capitalization required 10% 11% Farm price 1 500 000 2 000 000 1. Calculate what farmers A & B will be prepared to pay for the respective pieces of land. Use the given information. 2. Calculate the minimum own capital which is needed for both farmers. Also indicate the maximum mortgage loan in both cases. n = 10; i = 12% 3. Determine the minimum period which the two farmers can afford to take out a mortgage loan on the respective farms if the interest rate changes to 10%. (25) Page 4 of 10 TASK 3 A Gross production value 986 000 1 685 000 Production marketing & admin costs 560 000 1 100 000 Cost of living 130 000 180 000 Additional capital required 150 000 200 000 Capitalization required 10% 11% Farm price 1 500 000 2 000 000 1. Calculate what farmers A & B will be prepared to pay for the respective pieces of land. Use the given information. 2. Calculate the minimum own capital which is needed for both farmers. Also indicate the maximum mortgage loan in both cases. n = 10; i = 12% 3. Determine the minimum period which the two farmers can afford to take out a mortgage loan on the respective farms if the interest rate changes to 10%. (25) Page 4 of 10
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