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Thread: Interest on Mortgage Loans

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    Question Interest on Mortgage Loans

    Hi all! I desperately need your help!

    I need to do the following question. Would someone be so kind as to help me with the calculation as I do not have one in my textbook?

    Provide for the Interest on the Mortgage Loan. Interest Is calculated at 12.00% per annum. The liability was re-paid By R 45 000 by April 1, 2007. There were no other additional loans or repayments during the financial year, but twelve end-of month instalments of R 1464.38 each are due to be repaid on the Loan, starting at the end of July 2007.

    The Financial Year Runs From 1 July to 30 June. The mortgage loan amount on the List of Balances at 30 June 2007 is RR 159 750.00

    P.S.
    The answer they provide is R 23 220. But they do not show how to get to it.

    Please Help me guys? I don't have a tutor or Lecturer to ask as I am studying correspondence.

    Thanks a million

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    Goodness...

    Its 204,750 x 12% for 9 months, and
    159,750 x 12% for 3 months

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    Beancounter (07-Aug-14)

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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    Goodness...

    Its 204,750 x 12% for 9 months, and
    159,750 x 12% for 3 months
    Dammit Clive, you beat me to it!
    That's correct. Well done!

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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    Goodness...

    Its 204,750 x 12% for 9 months, and
    159,750 x 12% for 3 months
    Yay!!!! Thank you Clive!

    I appreciate your help!!!!!!

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