A company purchase an equipment at a price of RM368 000 and makes a down payment of 10% of the purchase price. The company amortises the balance with 360 monthly payments at an annual interest rate of 4.5% which is compounded mothly. (a) Calculate (i) the monthly payment (ii) the total interest payable (b) If the company does not settle the first six monthly payments, determine the total amount payable on the seventh month. Assume no extra charge on late payment. (c) If the monthly payment is RM1996.40, calculate the number of monthly payments required to amortise the loan.
A company purchase an equipment at a price of RM368 000 and makes a down payment of 10% of the purchase price. The company amortises the balance with 360 monthly payments at an annual interest rate of 4.5% which is compounded mothly. (a) Calculate (i) the monthly payment (ii) the total interest payable (b) If the company does not settle the first six monthly payments, determine the total amount payable on the seventh month. Assume no extra charge on late payment. (c) If the monthly payment is RM1996.40, calculate the number of monthly payments required to amortise the loan.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company purchase an equipment at a price of RM368 000 and makes a down payment of 10% of the purchase price. The company amortises the balance with 360 monthly payments at an annual interest rate of 4.5% which is compounded mothly.
(a) Calculate
(i) the monthly payment
(ii) the total interest payable
(b) If the company does not settle the first six monthly payments, determine the total amount payable on the seventh month. Assume no extra charge on late payment.
(c) If the monthly payment is RM1996.40, calculate the number of monthly payments required to amortise the loan.
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