SOLUTION: in 1997 justine bought a three bedroom house for R480000.he paid a deposit of R150000 and secured a loan for the outstanding amount.the yearly interest rate on the loan at that sta

Question 1076884: in 1997 justine bought a three bedroom house for R480000.he paid a deposit of R150000 and secured a loan for the outstanding amount.the yearly interest rate on the loan at that stage was 24%,compounded monthly,and the term was 20 years.Determine what justine's minimum monthly payment was.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
present value = 480,000 - 150,000 = 330,000
future value = 0
interest rate per time period = 24% per year / 12 months per year = 2% per month
number of time periods = 20 years * 12 months per year = 240 months.
payments are due at the end of each month.

put these inputs into the following calculator:

https://arachnoid.com/finance/

inputs will look like this:

$$$

click on pmt:

output will look like this:

$$$

result is minimum payment of 6,657.45.

here's a summary of financial formulas plus a reference to the calculator used:

https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes

the formula you would use for this problem is:

ANNUITY FOR A PRESENT AMOUNT WITH END OF TIME PERIOD PAYMENTS

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