Question

Cindy bought a house and managed to secure a home loan for R790 000 with monthly payments of R9 680,70
at a fixed interest rate of 13,75% per year, compounded monthly, over a period of 20 years. If an average
yearly inflation rate of 9,2% is expected, then the real cost of the loan (the difference between the total value
of the loan and the actual principal borrowed) equals

Answer 1

yu must be same persun even tho werds slitely differ

pae 9,680.70 $/month for 20 yeers, so $ pae=20*12*9,680.7

=240*9,680.7

=2,323,368$

deflate wipe out value just like kompound interest

1$ at 13.75% over 20 yeers=15.39995

reel $=2,323,368/15.39995

=150,872.95