Question 10
A man bought a house at $350,000.00. He paid 20% of the cost from his own resources and then rest with a loan he took from the bank at 7% simple interest per annum for 8 years. Calculate the:
- total cost of the house to the man.
- percentage increase in the cost of the house as a result of the loan.
- percentage loss, correct to two decimal places, if after paying the loan, he renovates the house at a cost of $10,000.00 and then sells it for $460,000.00.
Observation
The Chief Examiner reported that majority of the Candidates avoided this question and just quite a handful of those who attempted it did well.
