a) After graduation at the age of 25, you plan to buy a house for your family using a bank loan. For the deposit, you paid RM25,000 at year 0 to reduce the monthly payment to the bank. You aim to settle your bank loan at the age of 55. The bank imposes 8.5% interest rate for the first 10 years and 9% interest rate for the remaining years (both interest rates are compounded monthly). With the original price for the house amounting RM350,000, (i) Compute the total amount of money you will pay at the end of the loan payment. (ii) Estimate the monthly payment that you need to pay if the interest rate is at a flat rate of 7.5% p.a. compounded monthly. m inom {Hint: ieff = (1+ - 1, r = inom m m
a) After graduation at the age of 25, you plan to buy a house for your family using a bank loan. For the deposit, you paid RM25,000 at year 0 to reduce the monthly payment to the bank. You aim to settle your bank loan at the age of 55. The bank imposes 8.5% interest rate for the first 10 years and 9% interest rate for the remaining years (both interest rates are compounded monthly). With the original price for the house amounting RM350,000, (i) Compute the total amount of money you will pay at the end of the loan payment. (ii) Estimate the monthly payment that you need to pay if the interest rate is at a flat rate of 7.5% p.a. compounded monthly. m inom {Hint: ieff = (1+ - 1, r = inom m m
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:a) After graduation at the age of 25, you plan to buy a house for your family using a bank
loan. For the deposit, you paid RM25,000 at year 0 to reduce the monthly payment
to the bank. You aim to settle your bank loan at the age of 55. The bank imposes
8.5% interest rate for the first 10 years and 9% interest rate for the remaining years
(both interest rates are compounded monthly). With the original price for the house
amounting RM350,000,
(i)
Compute the total amount of money you will pay at the end of the loan
рayment.
(ii)
Estimate the monthly payment that you need to pay if the interest rate is at a
flat rate of 7.5% p.a. compounded monthly.
inom }
2) – 1, r =
m
inom
{Hint: ieff = (1+
m
m
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