QUESTION 2 Milia purchased a kitchen cabinet of RM40 000 on installment payment. The purchased was settled by paying 20% down payment and the balance was repaid with monthly installments for 2 years. If the interest charged is 5% per annum on the reducing balance, find: a) The total interest charged. b) The monthly payment. c) The outstanding balance if Milia decides to settle the loan immediately after the 15th payment by using Rule of 78
QUESTION 2 Milia purchased a kitchen cabinet of RM40 000 on installment payment. The purchased was settled by paying 20% down payment and the balance was repaid with monthly installments for 2 years. If the interest charged is 5% per annum on the reducing balance, find: a) The total interest charged. b) The monthly payment. c) The outstanding balance if Milia decides to settle the loan immediately after the 15th payment by using Rule of 78
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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QUESTION 2
Milia purchased a kitchen cabinet of RM40 000 on installment payment. The purchased was
settled by paying 20% down payment and the balance was repaid with monthly installments
for 2 years. If the interest charged is 5% per annum on the reducing balance, find:
a) The total interest charged.
b) The monthly payment.
c) The outstanding balance if Milia decides to settle the loan immediately after the 15th
payment by using Rule of 78.
Transcribed Image Text:LIST OF FORMULAE
1. S= P(1+ rt)
2. Proceeds = S(1 – dt)
d
4. d =
- dt
1+rt
5. S= P(1+ i)"
6. S= R
[(1+i)" – 1
7. A= R
8. SP = C + M
GP = OE + NP
10. NP = LP(1 – d,)(1 – d2) ... (1 – d,)
9.
2MI
S
12. r= 1-
11. r=
B(n + 1)
k(k + 1)
n(n + 1)
13. BV, = C(1 - r)"
14. OPB = Rk – I
%3D
3.
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