You bought a house for R1 650 000 on 1 February 2020 (registration date) and you obtained an 80 percent (80%) mortgage bond on that date. The bond interest rate since 2020 stayed constant at 8,5 percent (8,5%) per annum, interest compounded monthly. No interest rate changes are expected for the outstanding term of the bond. The duration of the bond is 20 years from date of registration.

Calculate the monthly instalment on the bond. (Round off to the nearest R1)

(a) R14 850

(b) R5 500

(c) R14 319

(d) R11 455

(e) None of the above