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Iman would like to buy a television as in Figure 1 above. The cash price of the television is RM1,999. She pays RM400 as a down payment and the balance was settle by making instalment plan. She has 2 plans that can been considered: 12 monthly instalments or 18 monthly instalments. If the interest rate charge was 4.5% based reducing balance, find: a. the total interest amount that Iman needs to pay for both plans, b. the monthly instalment price that Iman needs to pay after 12 months.

Iman would like to buy a television as in Figure 1 above. The cash price of the television is RM1,999. She pays RM400 as a down payment and the balance was settle by making instalment plan. She has 2 plans that can been considered: 12 monthly instalments or 18 monthly instalments. If the interest rate charge was 4.5% based reducing balance, find: a. the total interest amount that Iman needs to pay for both plans, b. the monthly instalment price that Iman needs to pay after 12 months.

Essentials Of Investments
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
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TWORKS WIDE RM 1899 RM 1999 G Figure 1. Iman would like to buy a television as in Figure 1 above. The cash price of the television is RM1,999. She pays RM400 as a down payment and the balance was settle by making instalment plan. She has 2 plans that can been considered: 12 monthly instalments or 18 monthly instalments. If the interest rate charge was 4.5% based reducing balance, find: a. the total interest amount that Iman needs to pay for both plans, b. the monthly instalment price that Iman needs to pay after 12 months.
Transcribed Image Text:TWORKS WIDE RM 1899 RM 1999 G Figure 1. Iman would like to buy a television as in Figure 1 above. The cash price of the television is RM1,999. She pays RM400 as a down payment and the balance was settle by making instalment plan. She has 2 plans that can been considered: 12 monthly instalments or 18 monthly instalments. If the interest rate charge was 4.5% based reducing balance, find: a. the total interest amount that Iman needs to pay for both plans, b. the monthly instalment price that Iman needs to pay after 12 months.
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