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Mandy and Andy are about to get married, but they want to buy their own house - NSC Mathematical Literacy - Question 1 - 2016 - Paper 2
Question 1
Mandy and Andy are about to get married, but they want to buy their own house. They are interested in buying the house shown below. The price of the house is R 0,98 ... show full transcript
Worked Solution & Example Answer:Mandy and Andy are about to get married, but they want to buy their own house - NSC Mathematical Literacy - Question 1 - 2016 - Paper 2
Step 1
1.1.1 If there must be money available for additional costs, what does this additional costs refer to?
Answer
One possible additional cost that Mandy and Andy need to consider is the transfer cost involved in purchasing a house. This fee is typically associated with legally transferring the ownership of the property.
Step 2
1.1.2 Mandy and Andy are going to apply for a home loan of 110% to cover for the home loan and all other additional costs. Calculate how much money they will borrow from the bank.
Answer
To calculate the total amount they will borrow, we consider the price of the house and the additional costs. The purchase price is R 0.98 million. Therefore, the total amount borrowed is:
This means they will borrow R 1,078,000.
Step 3
1.1.3 Why do you think that this couple see this house as an ideal place to buy?
Answer
Mandy and Andy may see this house as an ideal place to buy because it is accessible to important amenities such as hospitals, schools, and shopping complexes, meeting their lifestyle needs. Additionally, the house is spacious with features like a large kitchen, multiple bathrooms, and ample parking, making it suitable for their future family life. The overall affordability relative to their financing options also makes it appealing.