3. Azman purchased a land at a price of RM 280,000. He paid RM W as a down payment and borrowed the balance from a finance company that charged 6% compounded monthly. (a) If Azman paid RM 1,533.44 at the end of every month for 25 years, calculate the amount of down payment RM W that he made. (b) Immediately after making 121th payment, he had loan refinanced at 4% compounded monthly. What is the new monthly payment if the number of payment remained the same? (c) Calculate the interest charged on his loan. (d) Calculate the effective rate equivalent to the nominal rate in part (b).

3. Azman purchased a land at a price of RM 280,000. He paid RM W as a down payment and borrowed the balance from a finance company that charged 6% compounded monthly. (a) If Azman paid RM 1,533.44 at the end of every month for 25 years, calculate the amount of down payment RM W that he made. (b) Immediately after making 121th payment, he had loan refinanced at 4% compounded monthly. What is the new monthly payment if the number of payment remained the same? (c) Calculate the interest charged on his loan. (d) Calculate the effective rate equivalent to the nominal rate in part (b).

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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krystof took out a personal loan for $3, 569.74 with monthly payments for 5 years. The interest rate was 11.39% a) costruct an amortization table for the first 6 moths of this loan b) use the present value of the remaning payments method to find the amount he would owe after 6 months of payments
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
1. A house costs P500,400 cash. A purchaser will pay P100,000 cash, P50,000 at the end of 2 years and a sequence of 6 equal annual payments starting with one at the end of 4 years to discharge all his liabilities at 7% compounded annually. Find the annual payment which may be made for 6 years. 2.Mr. Tolentino wants to deposit a lump sum on the day his son is born into an account bearing an interest of 5% compounded annually in order to withdraw P35,000 each on his son's 18th, 19th, 20th and 21st birthdays How much is the lump sum?
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4) Raymond bought a new car by trading in his old car which was valued at RM10,000. He had to make an additional payment of RM3,500 as a down payment. He paid RM1,200 every month for five years. The interest rate charged was 4% per annum on 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 24th payment on the original balance
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