Photo AI
Mandy decided to make monthly repayments of R6 000 instead of the required R5 066,36 - NSC Mathematics - Question 9 - 2019 - Paper 1
Question 9
Mandy decided to make monthly repayments of R6 000 instead of the required R5 066,36. How many payments will she make to settle the loan? 6.2.2 After making monthly... show full transcript
Worked Solution & Example Answer:Mandy decided to make monthly repayments of R6 000 instead of the required R5 066,36 - NSC Mathematics - Question 9 - 2019 - Paper 1
Step 1
How many payments will she make to settle the loan?
Answer
To determine the number of payments Mandy will make to settle the loan, we first need to establish the balance of the loan and the amount of each repayment.
Given:
- Monthly repayment = R6,000
- Required loan repayment = R5,066.36
To find the total number of payments, we can use the formula:
Substituting the values:
However, since the number of payments must be a whole number, we round up to the nearest whole number. Thus, Mandy will make 1 payment.
Step 2
Calculate the maximum amount that Mandy may withdraw from the loan account.
Answer
Mandy has been making monthly repayments of R6,000 for nine years. The total amount she has paid can be calculated as follows:
- Total payments = Monthly repayment × Number of months = R6,000 × (9 × 12) = R6,000 × 108 = R648,000
The max amount Mandy can withdraw will equal the total amount repaid, since the bank suggested this amount could be regarded as an investment for funding her daughter's studies.
Thus, the maximum amount that Mandy may withdraw from the loan account is R648,000.