Question

QUESTION 6 On 1 July 2010, David bought a tractor for R2 000 000. On that day, he paid a deposit of 25% of the purchase price and the bank granted him a loan at an interest rate of 9,5% per annum, compounded

asked Oct 8, 2024 27.7k views

QUESTION 6

On 1 July 2010, David bought a tractor for R2 000 000. On that day, he paid a deposit
of 25% of the purchase price and the bank granted him a loan at an interest rate of
9,5% per annum, compounded quarterly, to pay off the balance of the purchase price.
David agreed to pay quarterly instalments of R58 000, starting on 1 January 2011.
6.1 How much money did David borrow from the bank?
6.2
6.3
6.4
How many quarterly instalments are required to pay off the loan?
Calculate the amount owing on the loan immediately after David paid his
quarterly instalment on 1 July 2016, i.e. six years after he bought the tractor.
Hence, calculate the amount of interest that David had paid on this loan until
immediately after paying his quarterly instalment on 1 July 2016.
(2)
(6)
(4)