im having troubles on this question and need some help ...
Edita has a gross income of 52 000 p.a and wants to purchase a studio apartment. The bank will allow her to repay up to 20 % of her gross income per annum. The current loan is 6.84 % p.a and fees and charges amount to $4000. She wants to borrow the maximum possible and make monthly repayments.
a) How much did she repay:
i) per annum ?
ii) per month?
b) Would the bank lend her $150 000 over 10 years? Justify your answer.
c) If no, what amount will the bank lend Edita over 10 years?
thanks
Edita has a gross income of 52 000 p.a and wants to purchase a studio apartment. The bank will allow her to repay up to 20 % of her gross income per annum. The current loan is 6.84 % p.a and fees and charges amount to $4000. She wants to borrow the maximum possible and make monthly repayments.
a) How much did she repay:
i) per annum ?
ii) per month?
b) Would the bank lend her $150 000 over 10 years? Justify your answer.
c) If no, what amount will the bank lend Edita over 10 years?
thanks