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Mandla Maseko wishes to purchase a motor vehicle from a deal.pdf

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Mandla Maseko wants to buy a car for R270000 and his bank ABSA will give him a loan for that amount over 60 months at 11% interest compounded monthly. To determine his monthly payment, the bank needs to calculate the interest charged monthly on the declining balance over 5 years.

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Mandla Maseko wishes to purchase a motor vehicle from a dealer in Johannesburg for R 270000. His bank, ABSA, is prepared to lend him the money on condition that he undertakes to repay the loan monthly over a period of 60 months. If interest is to be charged at 11% per annum compounded monthly, what will his monthly instalment be?

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