c) Muthu had just acquired a car loan from a bank. The bank had agreed to lend him RM120,000 in exchange for a 5% down p
Posted: Wed Jul 06, 2022 6:40 pm
c) Muthu had just acquired a car loan from a bank. The bank hadagreed to lend himRM120,000 in exchange for a 5% down payment on the automobile.Muthu wouldhave to pay monthly instalments to repay the debt at a rate of 3.0percent per annumcompounded monthly for 9 years.
i) Compute the amount of his monthly payment. (5 marks)
ii) Calculate Muthu's total interest assuming he keeps the loantill the agreed upon settlement term. (4 marks)
iii) Determine how much interest Muthu would save if he decidesto pay off the debt entirely after 6 years. (6 marks)
i) Compute the amount of his monthly payment. (5 marks)
ii) Calculate Muthu's total interest assuming he keeps the loantill the agreed upon settlement term. (4 marks)
iii) Determine how much interest Muthu would save if he decidesto pay off the debt entirely after 6 years. (6 marks)