4) Raymond bought a new car by trading in his oldcar which was valued at RM10,000. He had tomake an additional payment of RM3,500 as a downpayment. He paid RM1,200 every month for fiveyears. The interest rate charged was 4% per annumon the original balance. Find(a) the instalment price of the car(b) the cash price of the car(c) total interest charged(d) outstanding balance immediatley after the 24thpayment on the original balance

Mortgages allow both individuals and corporations to purchase real estate without having to pay the…

Answered: 4) Raymond bought a new car by trading…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in order to purchase a vehicle. He negotiated for the stated rate of the loan at 6% wherein the current market rate is 10%. What is the present value of the interest?
Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in order to purchase a vehicle. He negotiated for the stated rate of the loan at 6% wherein the current market rate is 10%. What is the present value of the principal?
3. Ahmad bought a set of sofa and paid RM200 as a down payment. The balance was to be paid by monthly payments of RM150 for two years. The interest rate was charged 10% per annum based on the original balance. No use excel. Find: a) the amount of the loan. (RM3000) b) the cash price. (RM3200) c) the amount he has to pay immediately after the 20th payment, if he decides to settle all the outstanding debts. Use the Rule of 78. (RM580)
John made a down payment of RM20,000 toward the purchase of a car. He secured a 9-year loan from a bank at 3% per year compounded monthly. Under the term of the loan agreement, he has to make a payment of RM715 at the end of each month. i. What is the purchase price of the car? And what is the interest paid?
Farouk bought an electric appliance through an instalment plan which he paid RM200 down payment. He had to make 12 monthly payments of RM120 each month to settle the unpaid balance. If the dealer charged him an interest of 5% per annum on the original balance, find the cash price of the item.
A man buys a house for $330,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 10 years. The interest rate on the debt is 8%, compounded semiannually.(a) Find the size of each payment.$ (b) Find the total amount paid for the purchase.$ (c) Find the total interest paid over the life of the loan.$
Mary bought an LCD television and paid RM300 as a down payment. The balance was to be paid by monthly payments of RM112 each month for two years. The interest rate charged was 10% per annum based on the original balance. Find:a. The amount of the loanb. The cash price
A businessman borrowed P300,000 with interest at the rate of 6% compounded annually. He agrees to discharge his obligation by paying a series of 6 equal annual payments, the first being due at the end of 5th year. a. What is the value of the annual payments? b. What is the sum of all his payments? c. What is the actual interest that he paid?
(b) En. Ahmad bought a house for RM 240,000 and paid 10% deposit. The balance is paid by a loan with 4% interest per annum. The payment of the loan is paid monthly for 20 years. Calculate the equity value of the house if it is sold at the end of year five with a value of RM260,000. (Equity is the difference between house market value and balance of the loan at the end of year 5).
3. Today, Cari purchased a car worth P1.5 million. A down payment of P150,000.00 has been made, and the remaining balance is to be amortized through 36 payments to be made at the end of each month, with the first payment due one month after the car was purchased. The interest on the outstanding balance is 6.5% compounded monthly. a. Determine the required monthly payments to retire the debt. b. Construct the first five rows of the table showing the amortization of the loan.
John bought a condo for RM 630,000. He made a 15% down payment and financed the balance through a bank for 30 years. (a) If the interest rate was 6.5% compounded monthly, find the monthly payment that John made to settle the loan. (b) How much was the total interest charged
Johan wants to buy a car on hire purchase for N$49000 at the rate of 12% p.a. repayable using monthly installments for a period of 3 years and 4 months. (No deposit was required). Bank 1 offered him a loan repayable at a certain monthly instalment for the same period of time as the car hire company at the rate same rate of 12% p.a. whereas Bank B offered to reduce the rate of by 1.5% p.a.(C) Total amount of money expected to be received by Bank 1. d) Monthly installment to be paid by George to Bank 1.

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