Elsa buy one bedroom fora total amount of $252000 and takes out a loan of $250000 at 5.8% p.a. compounded monthly. This is part of an investment strategy and she plans to sell the apartment in 10 years. She chooses an interest only loan where her monthly payments cover the interest being charged. a) What are her monthly repayments? b) how much will the apartment need to sell for in 10 years for sally to not make a loss? a) Elsa only pays for the interest, and the balance remains the same For example, for the first month, she'll pay the interest of: " ; j= 260000 ( ©. oY = 1208.43 IZ After the first month, she still owes 250,000, therefore the interest on the next months will be the same, i.e = 1208.33 b) She already spent $252000 for the apartment, then she has paid 1208.33* 12*10 = 145000 for the loan. Therefore, she must sell the apartment for at least 252000 + 145000 = 397000.