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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

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

FINANCIAL ACCOUNTING
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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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
Transcribed Image Text: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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