Question

My chair set was available at R11000 I can pay an 8% deposit and pay the remainder over a 4-year period charged at 6% interest p.a what would my monthly installments come to

Answer 1

R 237.67 monthly

Explanation:

Ordinary annuity

PV = C [ 1 - (1+i)^-n] / i

PV = 11000 - .08 (11000) = 10120

i= .06/12=.005 n = 4 yrs x 12months =48

Plug in the numbers and calculate 'C' = 237.67