You purchased an apartment in Pretoria East by paying a depo

You purchased an apartment in Pretoria East by paying a deposit of R 300 000
and borrowing the remainder of the purchase price from a financial institution.
The monthly payments to repay the mortgage loan at 12% per annum
compounded monthly are R 30 000 for a period of 20 years. What is the purchase
price of the apartment?

Solution

Monthy Installments                    30,000 PVIFA @ 12% for 20 Years                 90.8194 Present Value of Monthy Installments (A)              27,24,582 Initial Downpayment (B)                3,00,000 Purchase Price of Apartment (A)+(B)              30,24,582